Notes to the Consolidated Financial Statements for the Year Ended 30 June 2014 (h) Cash and Cash Equivalents (i) Trade and Other Receivables (f) Critical Accounting Estimates and Judgments Key estimates – share-based payments transactions Key judgements – tax losses Plant and equipment Key judgements – compound financial instruments (g) Impairment of Non-Financial Assets Depreciation Benitec Biopharma Ltd  Annual Report 2014 Page 25 profits will be available against which deductible temporary differences  can be utilised. The amount of benefits brought to account or which may be realised in  the future is based on the assumption that no adverse change will occur  in income taxation legislation and the anticipation that the consolidated  entity will derive sufficient future assessable income to enable the  benefit to be realised and comply with the conditions of deductibility  imposed by the law. Benitec Biopharma Limited and its wholly-owned Australian  subsidiary has formed an income tax consolidated group under the Tax  Consolidation Regime. Benitec Biopharma Limited is responsible for  recognising the current and deferred tax assets and liabilities for the  tax consolidated group. The Group notified the ATO on 12 February 2004  that it had formed an income tax consolidated group to apply from 1 July  2002. No tax sharing agreement has been entered between entities in  the tax consolidated group.  In assessing value in use, the estimated future cash flows are discounted  to their present value using a pre-tax discount rate that reflects current  market assessments of the time value of money and the risks specific  to the asset. Impairment losses relating to continuing operations are  recognised in those expense categories consistent with the function of  the impaired asset unless the asset is carried at revalued amount (in  which case the impairment loss is treated as a revaluation decrease).  Cash and cash equivalents includes cash on hand, deposits held at call  with banks, other short-term highly liquid investments with original  maturities of three months or less, and bank overdrafts. Bank overdrafts  are shown within short term borrowings in current liabilities on the  statement of financial position. Trade receivables, which generally have 30 day terms, are recognised  and carried at original invoice amount less an allowance for any  uncollectible amounts. An estimate for doubtful debts is made when  collection of the full amount is no longer probable. Bad debts are written  off when identified. Each class of property, plant and equipment is carried at cost or fair value  less, where applicable, any accumulated depreciation and impairment  losses. Plant and equipment are measured on the cost basis less depreciation  and impairment losses. The carrying amount of plant and equipment  is reviewed annually by directors to ensure it is not in excess of the  recoverable amount from these assets. The recoverable amount is  assessed on the basis of the expected net cash flows that will be  received from the assets employment and subsequent disposal. The  expected net cash flows have been discounted to their present values in  determining recoverable amounts. Subsequent costs are included in the asset’s carrying amount or  recognised as a separate asset, as appropriate, only when it is probable  that future economic benefits associated with the item will flow to the  group and the cost of the item can be measured reliably. All other repairs  and maintenance are charged to the statement of comprehensive income  during the financial period in which they are incurred. The depreciable amount of all fixed assets including capitalised lease  assets is depreciated on a diminishing value basis over their useful lives  to the consolidated entity commencing from the time the asset is held  ready for use. Leasehold improvements are depreciated over the shorter  of either the unexpired period of the lease or the estimated useful lives  of the improvements. The depreciation rates used for plant and equipment were 20-33 %. 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 proceeds  with the carrying amount. These gains and losses are included in the  statement of comprehensive income. When assets which have been  The Group assesses at each reporting date whether there is an indication  that an asset may be impaired. If any such indication exists, or when  annual impairment testing for an asset is required (i.e. Goodwill,  intangible assets with indefinite useful lives and intangible assets  not yet available for use), the Group makes an estimate of the asset’s  recoverable amount. An asset’s recoverable amount is the higher of its  fair value less costs to sell and its value in use and is determined for an  individual asset, unless the asset does not generate cash inflows that  are largely independent of those from other assets or groups of assets  and the asset’s value in use cannot be estimated to be close to its fair  value. In such cases the asset is tested for impairment as part of the cash  generating unit to which it belongs. When the carrying amount of an  asset or cash-generating unit exceeds its recoverable amount, the asset  or cash-generating unit is considered impaired and is written down to its  recoverable amount.  The Group measures the fair value of the liability component using the  prevailing market interest rate for similar convertible instruments. Given the company’s and each individual entities’ history of recent  losses, the Group has not recognised a deferred tax asset with regard  to unused tax losses and other temporary differences, as it has not  been determined whether the company or its subsidiaries will generate  sufficient taxable income against which the unused tax losses and other  temporary differences can be utilised. The Group measures the cost of equity-settled transactions with  employees by reference to the fair value of the equity instruments at  the date at which they are granted. The fair value is determined using a  Black-Scholes model, using the assumptions detailed in note 21. The Directors evaluate estimates and judgments incorporated into the  financial report based on historical knowledge and best available current  information. Estimates assume a reasonable expectation of future events  and are based on current trends and economic data, obtained both  externally and within the Group.  (j) Property, Plant and Equipment