Identify two examples of judgments

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Management Judgments

Unlike U.S. GAAP, IFRS requires that an entity disclose both (a) management judgments with the most significant effect on the financial statements and (b) information about the major sources of estimation uncertainty that may result in a material misstatement to the carrying values of the entities assets and liabilities. These disclosure requirements are included in Applying IFRS: Enhancing Communication Effectiveness (Links to an external site.). 

Question 1: Identify where judgments in the financial statements should be disclosed.

Question 2: Identify two examples of judgments that could have a significant impact on the financial statements.

Question 3: Identify four examples of estimation uncertainty that could result in a material adjustment in future years?

Question 4: Describe whether the entity should disclose the estimation if it is likely that this value might change significantly within the next year.

Reference no: EM132694457

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