IBERSOL | Annual Report 2021

CONSOLIDATED FINANCIAL STATEMENTS The nominal value of accounts receivable (minus impairment adjustments) and ac- counts 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 cur- rent market interest rate that is available for similar financial instruments. 4. MAIN ACCOUNTING ESTIMATES AND JUDGMENTS Estimates and judgements are continuously evaluated and are based on past experi- ence 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, ac- counting based on estimates rarely corresponds to the real reported results. Esti- mates and premises that present a significant risk of leading to a material adjust- ment in the accounting value of the assets and liabilities in the following year are described below: a) Goodwill impairment analysis, financial investments in associated and jointly controlled companies, rights of use, property, plant and equipment and intangi- ble assets. Impairment analyses require the determination of the fair value and / or the use value of these assets (or of some CGU). This process requires a high number of judgments, namely the estimation of future cash flows associated with the assets or the respective CGU and the determination of an appropriate discount rate for calculating the present value of said cash flows. In this regard, the Group has, once again, established the requirement to use the maximum possible amount of observ- able market data. It also established mechanisms for monitoring calculations based on the critical challenge of the reasonableness of the assumptions used, their coher- ence and consistency (in similar situations). Information on the most relevant assumptions used in the impairment analysis, as well as the sensitivity of the results obtained in the face of certain changes in as- sumptions, is disclosed in Notes 2.9, 8 and 9. b) Measurement and recognition of deferred taxes Deferred tax assets are recognized only when it is probable that there will be suf- ficient taxable profits or taxable temporary differences related to the same tax au- 366