Notes to the consolidated annual financial statements l Note 8

8 Finance charges and fair value movements     Group        Company    
         2017
Rm
 
      2016
Rm 
      2017
Rm
 
      2016
Rm 
  
         888        622        801        618    
Finance charges on interest bearing debt*        618        521        558        489    
Local debt        771        624        711        592    
Less: Finance charges capitalised**        (153)       (103)       (153)       (103)   
Foreign exchange and fair value movements        270        101        243        129    
Foreign exchange (gains)/losses        (145)       428        (169)       457    
Fair value adjustments        415        (327)       412        (328)   
Capitalisation rate for borrowing costs (%)       11.5        11.5        11.5        11.5    
Finance charges relate to interest expense on financial liabilities not measured at fair value through profit or loss.

The increase in foreign exchange and fair value movements was mainly as a result of hedges taken in a volatile economic environment partly offset by a higher fair value gain on revaluation of the underlying assets held by the cell captive.
 * For interest bearing debt movement, refer to note 26.
** Finance charges on qualifying assets are capitalised to property, plant and equipment and intangible assets.

Notes to the consolidated annual financial statements l Note 8