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CONSOLIDATED FINANCIAL STATEMENTS
4. IMPORTANT ACCOUNTING ESTIMATES AND
JUDGMENTS
Estimates and judgements are continuously
evaluated and are based on past experience and
on other factors, including expectations regarding
future events that are believed to be reasonably
probable within the respective circumstances.
The group makes estimates and outlines premises
about the future. Generally, accounting based on
estimates rarely corresponds to the real reported
results. Estimates and premises that present a
significant risk of leading to a material adjustment
in the accounting value of the assets and liabilities
in the following year are described next:
3.2. Estimated fair value
The fair value of financial instruments
commercialised in active markets (such as publicly
negotiated derivatives, securities for negotiation
and available for sale) is determined based on the
listed market prices on the consolidated statement
of financial position date. The market price used for
the group’s financial assets is the price received by
the shareholders in the current market. The market
price for financial liabilities is the price to be paid in
the current market.
The nominal value of accounts receivable (minus
impairment adjustments) and accounts payable
is assumed to be as approximate to its fair value.
The fair value of financial liabilities is estimated
by updating future cash flows contracted at the
current market interest rate that is available for
similar financial instruments.