b"Consequently, the company has commenced amortising the value of bed licenses from the beginning of the year on a straight-line basis over their remaining economic life to 1 July 2024.This has resulted in an amortisation expense in the profit and loss for the year ended 30 June 2022 of $11,950,440 with no impact to the cash flows of the Company.Bed licenses are tested for impairment if events or changes in circumstances indicate that it may be impaired. Refer below for further information about impairment testing of bed licenses.Impairment In accordance with Australian Accounting Standards, the Company tests property, plant and equipment, right-of-use assets, and bed licenses for impairment to ensure they are not carried above their recoverable amounts:At least annually for indefinite life intangible assets. Where there is an indication that assets may be impaired (which is assessed at least at each reporting date).For the purposes of assessing impairment, bed licenses are allocated to cash-generating units (CGUs) or the groups of CGUs that are expected to benefit from these assets. Bed licenses are allocated to each Aged Care Facility for the purposes of impairment testing. The methodology and modelling used in assessing the recoverable amount of the Companys CGUs is otherwise consistent with the approach set out in the Company's 2021 Financial Report. A review of indicators of impairment relating to bed licenses and other non-current assets was performed as at 30 June 2022. This incorporated consideration of the recent Australian Government announcement with respect to the abolishment of bed licenses from 1 July 2024 (refer to Significant judgmentAged Care Bed licenses). As a result of this review, no indicators of impairment were identified that would require an impairment test to be performed as at 30 June 2022. The Companys 2021 Financial Report details the most recent annual impairment tests undertaken for bed licenses. The Companys impairment tests are based on value-in-use (VIU). VIU calculations are based on the discounted cash flows expected to arise from the asset or CGU.NOTE 11: TRADE AND OTHER PAYABLES20222021$000$000 CURRENT Trade Creditors14,3058,732 Sundry Creditors5,3536,988 CDC Client Funds Held*16,00126,459 Deposits Held3131 Total Trade and Other Payables35,69042,210Accounting Policy These amounts represent liabilities for goods and services provided to the Company prior to the end of financial year which are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition. Trade and other payables are presented as current liabilities unless payment is not due within 12 months after the reporting period. They are recognised initially at their fair value and subsequently measured at amortised cost using the effective interest method. *Client funds held are included in Cash at bank and on deposit.Page | 37"