Note 2 Estimates and assessments

Note 2 Estimates and assessments

In making these financial reports, group management has made assessments, estimates and assumptions that affect the group’s reported accounts. These estimates and assumptions are based on what is known at the time the financial reports are presented, as well as on historical experience and assumptions that group management considers reasonable under the current circumstances. The conclusions drawn by group management form the basis for the values reported in these accounts. Actual future values, estimates and assessments in future financial reports during the coming year may differ from those in this report, due to changing environmental factors and new knowledge and experience.

Shares in subsidiaries

Assumptions are made about future circumstances in order to estimate future cash flows that determine the recoverable amount. The recoverable amount is compared to the carrying amount of these assets and forms the basis for any impairment losses or reversals. The assumptions that affect the recoverable amount are mostly future financial performance, discount rates and useful life. If future external factors and circumstances change, assumptions may be affected so that the carrying amounts of the parent company’s assets change.