68 NOTEs TO THE FINANCIAL sTATEMENTs  ReCoVeRABle AMounT dePReCiATion And AMoRTiSATion BoRRoWinGCoSTS (Q) TRADE AND OTHER PAYABLES (P) NON-CURRENT ASSETS HELD FOR SALE AND  DISCONTINUED OPERATIONS (S) INTEREST BEARING LIABILITIES (R) PROVISIONS 1. sUMMARY OF sIGNIFICANT ACCOUNTING POLICIEs (CONTINUED) FAIRFAx MEDIA LIMITED AND CONTROLLED ENTITIES FOR THE PERIOD ENDED 30 JUNE 2013 All items of property, plant and equipment are reviewed  annually to ensure carrying values are not in excess of  recoverable amounts. Recoverable amounts are based upon  the present value of expected future cashflows. Land is not depreciated. Depreciation on other assets is  calculated using the straight-line method to allocate their  cost, net of their residual values, over their estimated useful  lives, as follows: Provisions are recognised when the Group has a legal,  equitable or constructive obligation to make a future sacrifice  of economic benefits to others as a result of past transactions,  or past events, it is probable that a future sacrifice of  economic benefits will be required and a reliable estimate can  be made of the amount of the obligation. Provisions are not  recognised for future operating losses. Provisions are measured at the present value of  management’s best estimate of the expenditure required  to settle the present obligation at the reporting date using  a discounted cash flow methodology. The risks specific to  the provision are factored into the cash flows and as such a  risk-free government bond rate relative to the expected life  of the provision is used as a discount rate. If the effect of the  time value of money is material, provisions are discounted  using a current pre-tax rate that reflects the time value of  money and the risks specific to the liability. The increase in  the provision resulting from the passage of time is recognised  in finance costs. The assets’ residual values and useful lives are reviewed and  adjusted, if appropriate, at each reporting date. An asset’s  carrying amount is written down immediately to its  recoverable amount if the asset’s carrying amount is greater  than its estimated recoverable amount. Gains and losses on  disposals are determined by comparing the proceeds with  carrying amount. These are included in the income statement. A provision for dividends is not recognised as a liability  unless the dividends are declared, determined or publicly  recommended on or before reporting date. Subsequent to initial recognition at fair value, net of  transaction costs incurred, interest bearing liabilities are  measured at amortised cost. Any difference between the  proceeds (net of transaction costs) and the redemption  amount is recognised in the income statement over the  period of the borrowings using the effective interest method.  Finance lease liabilities are determined in accordance with the  requirements of AASB 117 Leases (refer to Note 1(I)). The Group classifies non-current assets and disposal groups  as held for sale if their carrying amounts will be recovered  principally through a sale transaction rather than through  continuing use. Non-current assets and disposal groups  classified as held for sale are measured at the lower of their  carrying amount and fair value less costs to sell. The criteria  for held for sale classification is regarded as met only when  the sale is highly probable and the asset or disposal group  is available for immediate sale in its present condition.  Management must be committed to the sale, which should be  expected to qualify for recognition as a completed sale within  one year from the date of classification. Discontinued operations are excluded from the results of  continuing operations and are presented as a single amount  as profit or loss after tax from discontinued operations in the  income statement. Property, plant and equipment and intangible assets are not  depreciated or amortised once classified as held for sale. Borrowing costs include interest, amortisation of discounts  or premiums relating to borrowings, amortisation or  ancillary costs incurred in connection with arrangement  of borrowings and foreign exchange losses net of hedged  amounts on borrowings, including trade creditors and lease  finance charges. Borrowing costs are expensed as incurred unless they relate  to qualifying assets. Qualifying assets are assets which take  more than twelve months to get ready for their intended  use or sale. In these circumstances, borrowing costs are  capitalised to the cost of the asset. Where funds are borrowed  generally, borrowing costs are capitalised using a weighted  average capitalisation rate.  Liabilities for trade creditors and other amounts are carried at  amortised cost which is the fair value of the consideration to  be paid in the future for goods and services received. Loans  payable to related parties are carried at amortised cost and  interest payable is recognised on an accruals basis. Buildings up to 60 years Printing presses up to 10 years Other production equipment  up to 15 years Other equipment up to 20 years Computer equipment up to 6 years