Notes to and forming part of the Consolidated Financial Statements For the period from incorporation to 26 June 2004 

Equity based compensation benefits are provided to certain employees via the Super Cheap Auto Executive Option Plan. Information on this scheme is set out in Note 31. 

The amounts disclosed for remuneration of Directors and executives in Note 31 include the assessed fair value of options, using the Black- Scholes option pricing model, at the date they were granted. 

Contributions are made by the economic entity to an employee superannuation fund and are charged as expenses when incurred. 

## (o) Borrowing costs 

Borrowing costs are recognised in the period in which these are incurred and are expensed in the period to which the costs relate. Generally costs such as discounts and premiums incurred in raising borrowings are amortised on a straight line basis over the period of the borrowing. Borrowing costs include: 

• interest on bank overdrafts and short-term and long-term borrowings; 

• amortisation of discounts or premiums relating to borrowings; 

• amortisation of ancillary costs incurred in connection with the arrangement of borrowings; 

• finance lease charges; and 

• certain exchange differences arising from foreign currency borrowings. 

## (p) Cash 

For the purposes of the statement of cash flows, cash includes cash on hand, cash at bank and at call deposits with banks or financial institutions. 

## (q) Goods and Services Tax 

Revenues, expenses and assets are recognised net of the amount of goods and services tax, except where the amount of goods and services tax incurred is not recoverable from the Australian Taxation Office. In these circumstances the goods and services tax is recognised as part of the cost of acquisition of the asset or as part of the item of expense. Receivables and payables in the statement of financial position are shown inclusive of goods and services tax. 

## (r) Tax consolidation legislation 

Effective 1 July 2003, for the purposes of income taxation, Super Cheap Auto Group Limited and its wholly-owned Australian controlled entities formed a tax consolidation group. The Australian Taxation Office will be notified of this decision, in accordance with tax legislation requirements, at the time of lodgement of the 2004 tax return. 

As a consequence, Super Cheap Auto Group Limited as the head entity in the tax consolidated group, recognises current and deferred tax amounts relating to transactions, events and balances of the wholly owned Australian controlled entities in this group as if those transactions, events and balances were its own, in addition to the current and deferred tax amounts in relation to its own transactions, events and balances. Amounts receivable or payable under an accounting tax funding agreement with the tax consolidated entities are recognised separately as tax-related amounts receivable or payable. Expenses and revenues arising under the tax funding agreement are recognised as a component of income tax expenses (revenue). 

## (s) Financial year 

As allowed under section 323D(2) of the Corporations Act 2001, the Directors have determined the financial year to be a fixed period of fifty-two calendar weeks or fifty-three calendar weeks. For the period to 26 June 2004, the Company is reporting on the period that began 8 April 2004, being incorporation date, and ended 26 June 2004. 

## (t) Rounding of amounts 

The economic entity is of a kind referred to in Class Order 98/0100, issued by the Australian Securities and Investments Commission, relating to the “rounding off” of amounts in the financial report. Amounts in the financial report have been rounded off in accordance with that Class Order to the nearest thousand dollars. 

