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 Significant expenditure associated with trademarks  are deferred and amortised on a straight line  basis over the periods during which the expected  benefits will be derived.  Significant items of expenditure, such as costs  incurred in store set-ups, are expensed in  the financial period in which these costs are  incurred. (iii) Other items of expenditure  (ii) Trademarks  (h) Depreciation and amortisation of property,  plant and equipment  Depreciation and amortisation are calculated on  a straight line or diminishing value basis so as  to write off the net cost of an item of property,  plant and equipment over the expected useful  life of each asset to the consolidated entity. Estimates of remaining useful lives are made on  a regular basis for all assets, with annual re- assessments for major items. The depreciation  rates used for each class of assets are: Trade and other creditors are payables for goods  and services provided to the consolidated entity  prior to the end of the financial period and  which are unpaid at that date. The amounts are  unsecured and are normally paid within thirty  days of recognition. (k) Trade and other creditors  (l) Interest bearing liabilities  (m) Dividends  (i) Leased non-current assets  (n) Employee benefits  A distinction is made between finance leases,  which effectively transfer from the lessor to the  lessee substantially all the risks and benefits  incident to ownership of leased non-current  assets, and operating leases, under which the  lessor effectively retains substantially all such  risks and benefits. Loans are carried at the amount that represents  the present value of the future cash flows  associated with servicing the debt. Interest is  accrued over the period it becomes due and is  recognised as other creditors. Provision is made for the amount of any dividend  declared by the Directors on or before the end  of the financial period but not distributed at  balance date. Finance leases are capitalised by establishing a  lease asset and lease liability at the present  value of the minimum lease payments. Lease  payments are allocated between the principal  component of the lease liability and the interest  expense. The lease asset is amortised on a  straight line basis over the term of the lease  or, where it is likely that the consolidated  entity will obtain ownership of the asset, the  life of the asset. Lease assets at the reporting  date are being amortised at rates ranging from  10% to 37.5%. Provision is made for the economic entity’s  liability for employee benefits arising from  services rendered by employees to balance date. A liability for employee benefits in the form of  bonus payments is recognised in other creditors  when the bonus criteria have been satisfied  and the amount of the bonus can be reliably  determined. Employee benefits expected to be  settled within one year, together with benefits  arising from wages and salaries and annual leave  which will be settled after one year, have been  measured at the amounts expected to be paid when  the liability is settled, plus related on-costs.  Other employee benefits payable later than one  year have been measured at the present value of  the estimated future cash outflows to be made for  those benefits. Operating lease payments are charged to the  statement of financial performance in the periods  in which these are incurred, as this represents the  pattern of benefits derived from the leased assets. Goodwill is recorded at the amount by which the  purchase price of an entity exceeds the fair  value attributed to the identifiable net assets  at the date of acquisition. Goodwill is amortised  on a straight line basis over a period of twenty  years. The balances are reviewed annually and  any balance representing future benefits, the  realisation of which is considered to no longer  be probable, is written off.  SUPER CHEAP AUTO GROUP LIMITED ANNUAL REPORT 2004 (i) Goodwill and brand  (j) Intangible assets and expenditure carried forward  Depreciation rate Plant and equipment  10% - 37.5% Capitalised leased  plant and equipment  10% – 37.5% Motor vehicles  15% Computer equipment  25% – 37.5%