Growthpoint Interactive Annual Report 2018

Notes to the Financial Statements continued Assets pledged as security The bank loans, Loan Notes, USPP and bills payable by the Group are secured by first ranking mortgages over the Group’s real property interests, including those classified as investment properties. The carrying amounts of assets pledged as security for current and non-current borrowings are: 2018 2017 $’000 $’000 Current Floating charge Cash and cash equivalents 31,463 31,459 Receivables 6,583 10,891 Assets held for sale 64,250 103,500 102,296 145,850 Non-current First mortgage Investment properties 3,291,800 3,180,275 Floating charge Plant and equipment 930 1,197 Deferred tax assets 1,046 929 Total non-current assets pledged as security 3,293,776 3,182,401 Total assets pledged as security 3,396,072 3,328,251 3.2 Borrowing costs Accounting policies Borrowing costs are interest and other costs incurred in connection with interest bearing liabilities including derivatives and recognised as expenses in the period in which they are incurred, except where they are incurred for the construction of any qualifying asset where they are capitalised during the period of time that is required to complete and prepare the asset for its intended use. Borrowing costs can be analysed as follows: 2018 2017 $’000 $’000 Bank interest expense and charges 53,215 52,821 Amortisation of borrowing costs 1,582 2,411 54,797 55,232 3.1 Interest bearing liabilities (continued) Interest bearing liabilities (continued) Growthpoint Properties Australia 2018 Annual Report 76