Consolidated  Notes to the  Financial  Statements 74 Note 1 – Summary of significant accounting policies  (continued) 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. 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. 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. 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. 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 Business combinations Allowance for doubtful debts – AASB 124  Related Party Disclosures  and AASB 2009-12  Amendments to Australian Accounting Standards –IFRS 13  Fair Value Measurement  is effective for annual reporting  periods beginning on or after 1 January 2013. –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 – Presentation of Items of Other Comprehensive Income  (Amendments to IAS 1)  is effective for annual reporting periods  beginning on or after 1 July 2012. – 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 –IAS 19  Employee Benefits  is effective for annual reporting  periods beginning on or after 1 January 2013. –IAS 28  Investments in Associates and Joint Ventures (2011)  is  effective for annual reporting periods beginning on or after  1 January 2013. Note 2 – Significant accounting judgements, estimates and  assumptions 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. 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. 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. 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. 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.