NOTES TO THE FINANCIAL STATEMENTS CONTINUED Notes to and forming part of the Consolidated Financial Statements For the period from incorporation to 26 June 2004 Equity based compensation benefits are provided  to certain employees via the Super Cheap Auto  Executive Option Plan. Information on this  scheme is set out in Note 31. The amounts disclosed for remuneration of  Directors and executives in Note 31 include the  assessed fair value of options, using the Black- Scholes option pricing model, at the date they  were granted. Contributions are made by the economic entity to  an employee superannuation fund and are charged  as expenses when incurred. Borrowing costs are recognised in the period in  which these are incurred and are expensed in  the period to which the costs relate. Generally  costs such as discounts and premiums incurred in  raising borrowings are amortised on a straight  line basis over the period of the borrowing. Borrowing costs include: • interest on bank overdrafts and short-term and  long-term borrowings; • amortisation of discounts or premiums relating  to borrowings; • amortisation of ancillary costs incurred in  connection with the arrangement of borrowings; • finance lease charges; and • certain exchange differences arising from  foreign currency borrowings. For the purposes of the statement of cash  flows, cash includes cash on hand, cash at bank  and at call deposits with banks or financial  institutions. Revenues, expenses and assets are recognised net  of the amount of goods and services tax, except  where the amount of goods and services tax  incurred is not recoverable from the Australian  Taxation Office. In these circumstances the  goods and services tax is recognised as part of  the cost of acquisition of the asset or as part  of the item of expense. Receivables and payables  in the statement of financial position are shown  inclusive of goods and services tax. The economic entity is of a kind referred to in  Class Order 98/0100, issued by the Australian  Securities and Investments Commission, relating  to the “rounding off” of amounts in the financial  report. Amounts in the financial report have  been rounded off in accordance with that Class  Order to the nearest thousand dollars. Effective 1 July 2003, for the purposes of income  taxation, Super Cheap Auto Group Limited and  its wholly-owned Australian controlled entities  formed a tax consolidation group. The Australian  Taxation Office will be notified of this decision,  in accordance with tax legislation requirements,  at the time of lodgement of the 2004 tax return. As a consequence, Super Cheap Auto Group Limited  as the head entity in the tax consolidated group,  recognises current and deferred tax amounts  relating to transactions, events and balances of  the wholly owned Australian controlled entities  in this group as if those transactions, events  and balances were its own, in addition to the  current and deferred tax amounts in relation  to its own transactions, events and balances. Amounts receivable or payable under an accounting  tax funding agreement with the tax consolidated  entities are recognised separately as tax-related  amounts receivable or payable. Expenses and  revenues arising under the tax funding agreement  are recognised as a component of income tax  expenses (revenue). As allowed under section 323D(2) of the  Corporations Act 2001, the Directors have  determined the financial year to be a fixed  period of fifty-two calendar weeks or fifty-three  calendar weeks. For the period to 26 June 2004,  the Company is reporting on the period that  began 8 April 2004, being incorporation date, and  ended 26 June 2004. (o) Borrowing costs  (s) Financial year  (r) Tax consolidation legislation  (t) Rounding of amounts  (q) Goods and Services Tax  (p) Cash  58