Finance income is a component of a company’s financial performance, representing the income generated from various financial assets. This might include interest earned on bank deposits, dividends received from investments in shares, or gains realized from the sale of financial instruments. For example, if a company holds a bond and earns interest payments, those payments are categorized as finance income. Additionally, gains from foreign exchange transactions or the appreciation of financial instruments might also be included under this category. Finance income is typically accounted for separately from a company’s core operating income to provide a clear distinction between operational and financial earnings within financial reports.