b"Accounting Policy A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised at the present value of the lease payments to be made over the term of the lease, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company's incremental borrowing rate.Lease payments comprise of fixed payments (including in-substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, amounts expected to be paid under residual value guarantees, exercise price of a purchase option when the exercise of the option is reasonably certain to occur, and any anticipated termination penalties. The variable lease payments that do not depend on an index or a rate are expensed in the period in which they are incurred.NOTE 13: DEFERRED CONSIDERATION20232022 Notes$000$000CURRENT Deferred consideration - Canossa13 (a)4,0005,0004,0005,000NON-CURRENT Deferred consideration - Canossa13 (a)2,9796,8402,9796,840Total Deferred Consideration6,97911,840Movements in deferred consideration:Carrying amount at the start of the year11,84016,620 Payments(5,000)(5,000) Interest expense139220 Carrying amount at the end of the year6,97911,84013 (a) Deferred consideration relates to the acquisition of the Canossa business on 1 December 2020. The contracted deferred consideration amounts (undiscounted) to be paid to the Canossian Sisters are as follows: -1 December 2023: $4,000,000 -1 December 2024: $3,200,000 Accounting PolicyThe deferred consideration liability is the difference between the total purchase consideration, usually on an acquisition of a business combination, and the amounts paid or settled to the reporting date, discounted to net present value. The increase in the deferred consideration liability resulting from the passage of time is recognised as a finance cost.The company has adopted the companys borrowing rate of 4.8% to calculate the net present value.Page | 36"