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Note 16. Impairment Testing of Intangible Assets with Indefinite Lives continued
b) Impairment tests for brand names with indefinite lives

Impairment testing is carried out by CCA by determining an asset’s recoverable amount as compared to its carrying amount. The recoverable amount is
determined, for the continuing operations, as the maximum of fair value less cost to sell and value in use. Value in use for brand names is calculated using
a “relief from royalty” discounted cash flow methodology covering a ten year period with an appropriate residual value at the end of that period. The
methodology utilises notional after tax royalty cash flows, which are based primarily on three year business plans prepared by management.

The following describes each key assumption on which management has based its cash flow projections to undertake impairment testing of brand names
with indefinite lives –

i) Cash flow forecasts

Brand related cash flow forecasts are based on three year business plans prepared by management, extrapolated out to ten years using forecast growth rates;

ii) Royalty rates

Royalty rates are based on market rates for comparable brands adjusted for costs associated with maintaining the brand;

iii) Residual value

Residual value is calculated using a perpetuity growth formula based on the notional after tax royalty cash flow forecast for year ten, weighted average

cost of capital (after tax) and forecast growth rate;
iv) Forecast growth rates

Forecast growth rates are based on past performance and management's expectations for future performance; and

v) Discount rates

Discount rates used are the weighted average cost of capital (after tax) for the Group in each country, risk adjusted where applicable.

CCA Group CCA Entity

Note 17. Trade and Other Payables
Current

Trade payables

295.3

0.2
Amounts due to subsidiaries 36
–

2.6
Amounts due to related entities (trade) 36
171.1

–
Other payables

25.1

0.6

Total trade and other payables (current)

491.5

Non-current

Amounts due to subsidiaries 36

–
Other payables

2.9

–

Refer

2007
$M
255.0
–
152.0
29.2
436.2
–
–
–
2006

2007
$M
0.2
512.1
–
8.1
520.4
–
–
–
2006

Note

$M

$M

Total trade and other payables (non-current)

2.9

Terms of trade in relation to trade payables are on a weighted average of 45 days from the date of invoice. The Group operates in a number of diverse
markets, and accordingly the term of trade vary by country and business.

a) Related party payables

For terms and conditions relating to related party payables, refer to Note 36.

b) Interest rate, foreign exchange and liquidity risk