Notes to the Consolidated Financial Statements  Cardno Limited and its Controlled Entities for the year ended 30 June 2010 14. INTANGIBLE ASSETS CONTINUED The recoverable amount of each cash-generating unit above is determined based on value-in-use calculations. Value-in-use is calculated based on the present value of cash flow projections over a 5 year period including a terminal  value at the end of year five. The cash flows are discounted using a pre-tax discount rate of 11.7% (2009: 12.8%) based  on an estimate of the Group’s weighted average cost of capital. This is a blended rate based on Cardno’s debt to equity  profile. Sensitivity analysis at higher rates shows no impairment.  The value-in-use calculations are based on budget forecasts for each cash generating unit for the 2010 year and longer  term year-on-year growth rates as assessed by operational management of the businesses. The growth rate is  calculated as the average growth rate over the forecast period based upon 2010 baseline performance. These forecasts  are based on underlying economic conditions and historical growth of project revenue. Costs are calculated taking into  account historical gross margins as well as estimated cost inflation over the period.  Pre-Tax Growth Rate Discount Rate Americas and Software  4.7%  11.7% Emerging Markets Region  2.2%  11.7% South East Australia & N.Z  3.6%  11.7% North & Western Australia  6.6%  11.7% Geotechnical Division  9.3% 11.7% The following assumptions were used in the value-in-use calculations:  2010  $’000  2009  $’000  15. OTHER NON-CURRENT ASSETS  Borrowing costs  89 213 16. TRADE & OTHER PAYABLES (CURRENT) Trade payables & accruals  63,988 48,633 Forward exchange contract  - 236 Vendor liability 18,474 9,910 82,462 58,779 17. INTEREST-BEARING LOANS & BORROWINGS (CURRENT) Lease liabilities  1,539 1,928 Hire purchase liabilities  506 418 Bank Loans 47,205 6,630 49,250 8,976 (i) Details of the terms and conditions of loans  and borrowings are set out in Note 20  18. SHORT-TERM PROVISIONS  Employee benefits  15,457 13,128 Training benefits  44 78 15,501 13,206 19. OTHER CURRENT LIABILITIES  Unearned revenue  Deferred Rent  29,194  56  38,033  -  29,250 38,033 20. INTEREST-BEARING LOANS & BORROWINGS (NON-CURRENT) Lease liabilities 3,291 3,482 Hire purchase liabilities  124 340 Bank Loans  122,575 72,254 125,990 76,076 Page 48 of 80 