Non-Current assets held for sale and discontinued operations.

Non-current assets are classified as held for sale if their carrying amount will be
recovered principally through a sale transaction rather than continuing use and a
sale is considered highly probable. They are measured at the lower of their carrying
amount and fair value less costs to sell, except for assets such as deferred tax
assets.
An impairment loss is recognized for any initial or subsequent write-down of an
asset (or disposal group) to fair value less costs to sell. A gain is recognized for any
subsequent increases in fair value less costs to sell of an asset, but not in excess of
any cumulative impairment loss previously recognized. A gain or loss not previously
recognized by the date of the sale of the non-current asset is recognized at the date
of derecongition.
Debt and equity instruments are classified as either liabilities or equity in
accordance with the substance of the contractual agreement
The allowance for doubtful accounts is a balance sheet account that reduces the
reported amount of accounts receivable. Providing an allowance for doubtful
accounts presents a more realistic picture of how much of the accounts receivable
will be turning to cash. The method of writing off a bad account operates by
debiting the allowance for doubtful accounts and crediting Accounts receivable as a
result.
Trade and other receivables are presented a net of impairment allowance which is
essentially a contra-asset account set up as a provision for the potential future loss
of capital. The impairment provision balance as at 29 June 2014 shows an allowance
of 17.8 million dollars in comparison to 2013s impairment allowance of 14.8 million
suggesting 2014 had significantly more bad debts.

The amount of the provision is the difference between the assets carrying amount
and the present value of estimated future cash flows, discounted at the original
effective interest rate

Creating an allowance for bad debts, which is a contra asset account that is carried
forward to next year, meaning that you will not need to estimate as much debt next
year since you have an outstanding allowance for bad debts; and since bad debts
are estimated based on prior experience, it should not be off by significant amounts.
Trade and other receivables are stated at their cost less impairment losses.

Impairment losses are recognized in the consolidated income statement unless the
asset has previously been revalued in which case the impairment loss is recognized
as reversal to the extent of that previous revaluation with any excess recognized
through the consolidated income statement

For trade and other receivables, a provision for impairment is established when
there is objective evidence that the Group will not be able to collect all amounts due
according to the original terms of the receivables.

Assuming they calculated the bad debt expense based on the amount of bad debts
in the previous years, we can look at the allowance for doubtful accounts and by
observing the difference between the 2014 and 2013s allowance, we can
effectively calculate the expected bad debt for the current period. The impairment
provision balance as at 29 June 2014 was 17.8 million dollars whereas 2013s
balance was 14.8 million. Since creating an allowance for bad debts is a contra
asset account which carries forward into the next year, we can estimate how much
is required based on prior experience whilst maintain accuracy in our prediction . To
calculate the estimated amount of bad debt that occurred, we can find the
difference between 17.8 million and 14.8 million which equates to 3 million dollars.
In comparison to 2013s bad debt expense account; we can assume that 2014
contained more doubtful accounts than 2013 -> The difference between the two
years could be wrong, and it could just be 17.8 million and 14.8 million respectively.

Two different methods to calculate the balance of the bad debts expense account
Income statement approach
Balance Sheet approach
Income statement approach relies on the historical relationship or an estimate of
the current relationship between credit sales and the amount of sales unlikely to be
collected. For example, past experience might suggest that bad debts are about 2
per cent of net credit sales each year. This percentage is then multiplied by net
credit sales to estimate the bad debts expense