Notes to the Financial Statements AASB 2013-5 Amendments to Australian Accounting Standards - Investment Entities AASB 2013-3 Amendments to AASB 136 - Recoverable Amount Disclosures for Non-Financial Assets Annual Improvements to IFRSs 2010-2012 Cycle Annual Improvements to IFRSs 2011-2013 Cycle NOTE 2. CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS Provision for impairment of receivables For personal use only Notes to the  Financial  Statements Mineral Resources Limited Annual Report 2014  63 The provision for impairment of receivables assessment requires a degree of estimation and judgement. The level  of provision is assessed by taking into account the recent sales experience, the ageing of receivables, historical  collection rates and specific knowledge of the individual debtors financial position. The preparation of the financial statements requires management to make judgements, estimates and  assumptions that affect the reported amounts in the financial statements. Management continually evaluates  its judgements and estimates in relation to assets, liabilities, contingent liabilities, revenue and expenses.  Management bases its judgements, estimates and assumptions on historical experience and on other various  factors, including expectations of future events, management believes to be reasonable under the circumstances.  The resulting accounting judgements and estimates will seldom equal the related actual results. The judgements,  estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts  of assets and liabilities (refer to the respective notes) within the next financial year are discussed below. These amendments are applicable to annual reporting periods beginning on or after 1 July 2014 and affects  four Accounting Standards as follows: Clarifies the ‘meaning of effective IFRSs’ in AASB 1 ‘First-time Adoption  of Australian Accounting Standards’; Clarifies that AASB 3 ‘Business Combination’ excludes from its scope the  accounting for the formation of a joint arrangement in the financial statements of the joint arrangement itself;  Clarifies that the scope of the portfolio exemption in AASB 13 ‘Fair Value Measurement’ includes all contracts  accounted for within the scope of AASB 139 ‘Financial Instruments: Recognition and Measurement’ or AASB 9  ‘Financial Instruments’, regardless of whether they meet the definitions of financial assets or financial liabilities  as defined in AASB 132 ‘Financial Instruments: Presentation’; and Clarifies that determining whether a specific  transaction meets the definition of both a business combination as defined in AASB 3 ‘Business Combinations’  and investment property as defined in AASB 140 ‘Investment Property’ requires the separate application of both  standards independently of each other. The adoption of these amendments from 1 July 2014 will not have a  material impact on the Consolidated Entity. These amendments are applicable to annual reporting periods beginning on or after 1 July 2014 and affects  several Accounting Standards as follows: Amends the definition of ‘vesting conditions’ and ‘market condition’ and  adds definitions for ‘performance condition’ and ‘service condition’ in AASB 2 ‘Share-based Payment’; Amends  AASB 3 ‘Business Combinations’ to clarify that contingent consideration that is classified as an asset or liability  shall be measured at fair value at each reporting date; Amends AASB 8 ‘Operating Segments’ to require entities  to disclose the judgements made by management in applying the aggregation criteria; Clarifies that AASB 8 only  requires a reconciliation of the total reportable segments assets to the entity’s assets, if the segment assets are  reported regularly; Clarifies that the issuance of AASB 13 ‘Fair Value Measurement’ and the amending of AASB  139 ‘Financial Instruments: Recognition and Measurement’ and AASB 9 ‘Financial Instruments’ did not remove  the ability to measure short-term receivables and payables with no stated interest rate at their invoice amount, if  the effect of discounting is immaterial; Clarifies that in AASB 116 ‘Property, Plant and Equipment’ and AASB 138  ‘Intangible Assets’, when an asset is revalued the gross carrying amount is adjusted in a manner that is consistent  with the revaluation of the carrying amount (i.e. proportional restatement of accumulated amortisation); and  Amends AASB 124 ‘Related Party Disclosures’ to clarify that an entity providing key management personnel  services to the reporting entity or to the parent of the reporting entity is a ‘related party’ of the reporting entity.  The adoption of these amendments from 1 July 2014 will not have a material impact on the Consolidated Entity. These amendments are applicable to annual reporting periods beginning on or after 1 January 2014 and allow  entities that meet the definition of an ‘investment entity’ to account for their investments at fair value through  profit or loss. An investment entity is not required to consolidate investments in entities it controls, or apply  AASB 3 ‘Business Combinations’ when it obtains control of another entity, nor is it required to equity account or  proportionately consolidate associates and joint ventures if it meets the criteria for exemption in the standard. The  adoption of these amendments from 1 July 2014 will have no impact on the Consolidated Entity. These amendments are applicable to annual reporting periods beginning on or after 1 January 2014. The  disclosure requirements of AASB 136 ‘Impairment of Assets’ have been enhanced to require additional  information about the fair value measurement when the recoverable amount of impaired assets is based on  fair value less costs of disposals. Additionally, if measured using a present value technique, the discount rate is  required to be disclosed. The adoption of these amendments from 1 July 2014 may increase the disclosures by the  Consolidated Entity. 30 June 2014