2 Critical accounting estimates and judgements
The preparation of IFRS consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities existing at the balance sheet date as well as the reported amounts of revenues and expenses during the reporting period. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Actual results and timing may differ from these estimates.
The table below is listing the areas where management's accounting estimates and judgements are most critical to reported results and financial position. The table is also showing where to find more information about those estimates.
|Critical accounting estimates||Note|
|Assigned values and useful lifes determined for intangible assets and property, plant and equipment acquired in a business combination||18. Intangible assets|
|Assumptions related to impairment testing of property, plant and equipment and intangible assets||19. Property, plant and equipment|
|Judgement used when assessing the nature of Fortum's interest in its investees and when considering the classification of Fortum's joint arrangements||20. Participations in associated companies and joint ventures|
|Assumptions and estimates regarding future tax consequences||29. Deferred income taxes|
|39. Legal actions and official proceedings|
|Assumptions made to determine long‑term cash flow forecasts of estimated costs for provision related to nuclear production||30. Nuclear related assets and liabilities|
|Assumptions used to determine future pension obligations||32. Pension obligations|