## Note 1 – Summary of significant accounting policies (continued) 

–IFRS 13 Fair Value Measurement  is effective for annual reporting periods beginning on or after 1 January 2013. 

IFRS 13 replaces the guidance on fair value measurement in existing IFRS accounting literature with a single standard. 

IFRS 13 defines fair value, provides guidance on how to determine fair value and requires disclosures about fair value measurements. However, IFRS 13 does not change the requirements regarding which items should be measured or disclosed at fair value. 

IFRS 13 will be mandatory for the consolidated entity’s 30 June 2014 financial statements. The potential impact on the consolidated entity’s financial statements has not yet been determined. 

– Presentation of Items of Other Comprehensive Income (Amendments to IAS 1)  is effective for annual reporting periods beginning on or after 1 July 2012. 

The amendments to IAS 1 require entities preparing financial statements in accordance with IFRSs to group together items within other comprehensive income that will and will not subsequently be reclassified to profit or loss. Tax on items in other comprehensive income is also required to be allocated on the same basis. 

The amendments to IAS 1 will be mandatory for the consolidated entity’s 30 June 2013 financial statements. The potential impact on the consolidated entity’s financial statements has not yet been determined. 

–IAS 19 Employee Benefits  is effective for annual reporting periods beginning on or after 1 January 2013. 

The amendments to IAS 19 focus on but are not limited to the accounting for defined benefit plans. In addition it changes the definition of short-term and other long-term employee benefits and some disclosure requirements. 

IAS 19 will be mandatory for the consolidated entity’s 30 June 2014 financial statements. The potential impact on the consolidated entity’s financial statements has not yet been determined. 

–IAS 28 Investments in Associates and Joint Ventures (2011)  is effective for annual reporting periods beginning on or after 1 January 2013. 

This Standard supersedes IAS 28 Investments in Associates and prescribes the accounting for investments in associates and sets out the requirements for the application of the equity method when accounting for investments in associates and joint ventures. 

The Standard defines significant influence and provides guidance on how the equity method of accounting is to be applied. It also prescribes how investments in associates and joint ventures should be tested for impairment. 

The revised Standard was issued as a consequence of the issue of IFRS 10 and IFRS 11 (see above) but does not change existing requirements on the application of the equity method. 

IAS 28 will be mandatory for the consolidated entity’s 30 June 2014 financial statements. The potential impact on the consolidated entity’s financial statements has not yet been determined. 

In addition to the above recently issued Standards, the following new and amendments to Standards are also applicable in future years. It is not expected these Standards will materially impact the consolidated entity’s financial statements upon adoption. 

– AASB 124 Related Party Disclosures  and AASB 2009-12 Amendments to Australian Accounting Standards 

–AASB 1053 Application of Tiers of Australian Accounting Standards  and AASB 2010-2 Amendments to Australian Accounting Standards arising from Reduced Disclosure Requirements 

–AASB 1054 Australian Additional Disclosures , AASB 2011-1 Amendments to Australian Accounting Standards arising from the Trans-Tasman Convergence Project  and AASB 2011-2 Amendments to Australian Accounting Standards arising from the Trans-Tasman Convergence Project – Reduced Disclosure Requirements 

– AASB 2009-14 Amendments to Australian Interpretation – Prepayments of a Minimum Funding Requirement 

–AASB 2010-4 Further Amendments to Australian Accounting Standards arising from the Annual Improvements Project 

–AASB 2010-5 Amendments to Australian Accounting Standards 

–AASB 2010-8 Amendments to Australian Accounting Standards – Deferred Tax: Recovery of Underlying Assets 

–AASB 2011-4 Amendments to Australian Accounting Standards to Remove Individual Key Management Personnel Disclosure Requirements 

## Note 2 – Significant accounting judgements, estimates and assumptions 

Management has identified the following critical accounting policies for which significant judgements, estimates and assumptions are made. Actual results may differ from these estimates under different assumptions and conditions and may materially affect financial results or the financial position reported in future periods. 

## Impairment of goodwill and other intangibles with indefi nite useful lives 

The consolidated entity determines whether goodwill and other intangibles with indefinite useful lives are impaired at least on an annual basis. This requires an estimation of the value in use of the recoverable amount of the cash-generating units, using a value in use discounted methodology, to which the goodwill and intangibles with indefinite useful lives are allocated. The assumptions used in the estimation of recoverable amount are discussed in Note 21. 

## Business combinations 

Acquisitions of subsidiaries and businesses are accounted for using the acquisition method. This method requires the application of fair values for both the consideration given and the assets and liabilities acquired. The calculation of fair values is often based on estimates and judgements including future cash flows, revenue streams and value in use calculations. 

## Allowance for doubtful debts 

The collectability of trade receivables is reviewed on an ongoing basis. An allowance for doubtful debts is established when there is objective evidence that the consolidated entity will not be able to collect all amounts due. Management uses its judgement in determining the level of doubtful debt provisioning, taking into account the historic analysis of bad debt trends and the prevailing economic conditions. Refer to Note 12 for further details. 

