Note 33 - Important estimates and assessments

According to company management, critical assessments relating to the applied accounting principles and sources of uncertainty in estimates relate primarily to the valuation of goodwill, deferred tax assets and inventories. The carrying amount of goodwill is tested not less than once a year to determine the need to recognize an impairment loss. This test includes making a number of assumptions regarding discount rates, cash flow and growth, for example, to calculate the fair value of the underlying asset. For additional information about impairment tests, see Note 6.

Deferred tax assets are recognized to the extent that it is probable that future tax surplus will be available against which temporary differences can be utilized. Inventories were valued at the lower of cost and net realizable value. The amount of the net realizable value includes calculations based on such data as assessment of future sales prices taking into account estimated price reductions. The actual outcome of future sales prices may deviate from these assessments.