FX), this should remain unchanged (i.e. fresh 2013 revenue receivable is offset by a similar
bad debt provision).
In this case, for a number of reasons, their treatment's clearly preferable — $ 1.3 m of AREO revenue (which is contractually due) is recorded, but this amount's immediately written off as
a bad debt provision in the P&L.
Yes, I've seen that & presumed it is a sloppy typo — it should say «after
a bad debt provision» as it does in the same text in the Dec - 12 final results, and in the Trade & Other Receivables and Related Party Transactions notes in both final & interim results.
«These amounts accrued or receivable at 30 June 2013 total US$ 3,667,331 ($ 2,819,505)(31 December 2012: US$ 2,597,188, $ 1,965,333) before
a bad debt provision of US$ 2,276,225 ($ 1,750,000)(31 December 2012: US$ 991,125, $ 750,000).»
Dairy Crest is increasing
its bad debt provision by up to # 4 million after a customer, Quadro Foods, called in administrators.
The accounting allowed for a long time a lender to use as
his bad debt provision his previous historical loss rate.
The downside of a P / E is that it is based on historic earnings, and that those earnings could be low for a specific and not - to - be-repeated event (for example, a bank taking
bad debt provision, or san oil company paying compensation for environmental issues).
In liquor, earnings were crimped by
bad debt provisions in Western Australia and the cost of preparing for the launch of the container deposit scheme in NSW on December 1.
Not exact matches
bad debt & impairment
provisions, plus amortisation)-- so it's reasonable to expect the impact of this accounting change will be easily absorbed under most scenarios.
Even if medical
debts and
bad credit can not be considered by healthcare insurers under the ACA, there is still some murkiness about the roll out of certain
provisions.