Notes to the consolidated annual financial statements l Note 7

7 Investment income   Group     Company  
      2017
Rm
    2016
Rm
    2017
Rm
    2016
Rm
 
      219     203     522     812  
Interest income     219     203     370     180  
Dividend income from subsidiaries             152     632  

The company's interest income increased as a result of an increase in interest received from subsidiaries.

Interest income relates to interest earned from financial assets not measured at fair value through profit or loss. Interest is recognised on a time proportionate basis taking into account the principal amount outstanding and the effective interest rate.

Dividends from investments are recognised on the date that the group is entitled to the dividend.

The decrease in dividend income is due to the non-declaration of dividend by Acajou Investments (Pty) Ltd to Telkom company in the current financial year.

Notes to the consolidated annual financial statements l Note 7