1.2 Use of estimates and judgments
Financial reporting requires management to make estimates and exercise judgment in applying the Group’s accounting policies, both of which can affect the reported amounts of assets, liabilities, contingent liabilities, and contingent assets at the date of the financial statements, and reported amounts of income and expenses during the reporting period. These accounting estimates and judgments are periodically reviewed. In the financial years 2024 and 2023, the effects of the global economic and geopolitical uncertainties on these assumptions have been taken into account.
The areas involving significant accounting estimates and judgments are related to the accounting of the acquisition in 2024 (see note 2.1) as well as the topics included in the following notes:
Note | Description of significant accounting estimates and judgments |
|---|---|
4.3 Inventories | Assumptions associated with the allowance for inventories |
4.5 Intangible assets | Assumptions associated with the capitalization of development costs for research and development activities |
4.6 Goodwill | Assumptions associated with the goodwill impairment test |
4.9 Provisions | Estimates associated with the measurement of provisions |
7.2 Employee benefit plans | Assumptions in relation to defined benefit plans |
8.1 Income taxes | Assumptions in relation to the measurement of income tax assets and liabilities |