Consolidated  Notes to the  Financial  Statements 74 (v) Trade and other payables (w) Borrowings (x) Employee benefits (z) Provisions (y) Share-based payments Defined contribution superannuation plans Defined benefit superannuation plans At the end of each reporting period, the consolidated entity  reviews the carrying amounts of its assets to determine whether  there is any indication that those assets have suffered an  impairment loss. If any such indication exists, the recoverable  amount of the asset is estimated in order to determine the extent  of the impairment loss (if any). Where it is not possible to estimate  the recoverable amount of an individual asset, the consolidated  entity estimates the recoverable amount of the cash-generating  unit to which the asset belongs.  Note 1 – Summary of significant accounting policies  (continued) (u) Impairment of non-financial assets excluding goodwill Intangible assets with indefinite useful lives are tested for  impairment at least annually and whenever there is an indication  that the asset may be impaired. Recoverable amount is the higher of fair value less costs to sell and  value in use. 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 for which the estimates  of future cash flows have not been adjusted. If the recoverable amount of an asset (or cash-generating unit) is  estimated to be less than its carrying amount, the carrying amount  of the asset (or cash-generating unit) is reduced to its recoverable  amount. An impairment loss is recognised immediately in profit or  loss, unless the relevant asset is carried at a revalued amount, in  which case the impairment loss is treated as a revaluation decrease. Where an impairment loss subsequently reverses, the carrying  amount of the asset (or cash-generating unit) is increased to the  revised estimate of its recoverable amount, but so that the  increased carrying amount does not exceed the carrying amount  that would have been determined had no impairment loss been  recognised for the asset (or cash-generating unit) in prior years.  A reversal of an impairment loss is recognised immediately in profit  or loss, unless the relevant asset is carried at a revalued amount,  in which case the reversal of the impairment loss is treated as a  revaluation increase. Trade and other payables represent liabilities for goods and services  provided to the consolidated entity prior to the end of the  reporting period that are unpaid and arise when the consolidated  entity becomes obliged to make future payments in respect of the  purchase of these goods and services. The amounts are unsecured  and are usually paid within 30 days of recognition. Borrowings are initially recognised at fair value of the consideration  received, net of transaction costs incurred. After initial recognition,  borrowings are subsequently measured at amortised cost using the  effective interest method.  Borrowings are classified as current liabilities unless the  consolidated entity has an unconditional right to defer settlement  of the liability for at least 12 months after the end of the  reporting period. A liability is recognised for benefits accruing to employees in  respect of wages and salaries, annual leave, long service leave and  sick leave when it is probable that settlement will be required and  they are capable of being measured reliably. Liabilities recognised in respect of short-term employee benefits  are measured at their nominal values using the remuneration rate  expected to apply at the time of settlement. Liabilities recognised in respect of long-term employee benefits  are measured as the present value of the estimated future cash  outflows to be made by the consolidated entity in respect of  services provided by employees up to the end of the  reporting period. Contributions to defined contribution superannuation plans are  recognised as an expense when employees have rendered service  entitling them to the contributions. For defined benefit superannuation plans, the cost of providing  benefits is determined using the projected unit credit method, with  actuarial valuations being carried out at the end of each reporting  period. Actuarial gains and losses are recognised directly in other  comprehensive income, in the period in which they occur.  Past service cost is recognised immediately in profit or loss to  the extent that the benefits are already vested, and otherwise  is amortised on a straight-line basis over the average period until  the benefits become vested. The defined benefit superannuation plan asset or liability recognised  in the statement of financial position represents the present value  of the defined benefit obligation at the end of the reporting period  less the fair value of the plan’s assets at that date and any  unrecognised past service cost. Any asset resulting from this  calculation is limited to unrecognised actuarial losses and past  service cost, plus the present value of available refunds and  reductions in future contributions to the plan. The consolidated entity provides benefits to employees in the form  of equity-settled share-based payments, whereby employees  render services in exchange for shares or rights over shares.  The fair value of share performance rights (SPRs) granted to eligible  employees under the AGL Long-Term Incentive Plan is recognised  as an employee benefits expense, with a corresponding increase in  the employee equity benefits reserve. The fair value is measured  at grant date and recognised over the period during which the  employees become unconditionally entitled to the SPRs. The fair  value at grant date is determined by an independent valuer. Details  regarding the determination of the fair value of share-based  payment plans are set out in Note 49. At the end of each reporting period, the consolidated entity revises  its estimate of the number of SPRs expected to vest. The amount  recognised as an expense is only adjusted when the SPRs do not  vest due to non-market related conditions. Under the AGL Share Reward Plan, shares are issued to eligible  employees for no consideration and vest immediately on grant  date. On this date, the market value of the shares issued is  recognised as an employee benefits expense, with a corresponding  increase in the employee equity benefits reserve. Provisions are recognised when the consolidated entity has a  present obligation (legal or constructive) as a result of a past event,  it is probable that the consolidated entity will be required to settle  the obligation, and a reliable estimate can be made of the amount  of the obligation.