1.3 Significant accounting judgments and estimates
Preparation of financial statements in conformity with IFRS Accounting Standards requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, expenses and related disclosures. This includes estimates and assumptions in the ordinary course of business as well as non-recurring events such as the outcome of pending legal disputes. The estimates and assumptions are continuously evaluated and are based on experience and other factors, including expectations of future events that are believed to be reasonable. Actual results may differ from these estimates and assumptions.
The main estimates and assumptions with a significant risk of resulting in a material adjustment within the next financial year are described in the following notes:
Description | Further information | |
Allocation of the transaction price to performance obligations | Note 2.3: Revenue | |
Renewal options in leases | Note 3.4: Leases | |
Capitalization of development costs | Note 3.5: Intangible assets | |
Impairment test | Note 3.5: Intangible assets | |
Provisions for warranty, returns and product liabilities | Note 3.7: Provisions | |
Fair value of financial liabilities at fair value through profit or loss | Note 4.8: Financial instruments | |
Deferred tax assets | Note 5.1: Taxes | |
Business combinations | Note 6.1: Acquisitions/disposals of subsidiaries | |
Defined benefit plans | Note 7.3: Employee benefits |