Annual
report 2020
Annual
report 2020
In preparing the Group’s accounts, the Company’s Management Board is required to make estimates, because many elements included in the financial statements cannot be measured with precision. Management Board reviews these estimates if the circumstances on which they were based evolve or in the light of new information or experience. Consequently, estimates made as at 31 December 2020 may be subsequently changed. The main estimates and judgements made are described in the following notes: The Group considers that the most significant adjustments to the carrying amounts of assets and liabilities could result from changes in estimates and judgements relating to impairment (see Note 9), provisions for claims, litigation and risks (see Notes 15 and 30), leases (see Note 13) and useful lives of tangible and intangible assets (see Notes 11, 12, 33.12 and 33.13). Where a specific transaction is not dealt with in any standard or interpretation, Management Board uses its judgment in developing and applying an accounting policy that results in information that is relevant and reliable, in that the financial statements: Previous topic
Note
Estimates and judgements
6, 33.8
Revenue
Allocation of transaction price to each performance obligation based on stand-alone selling price.
Estimating stand-alone selling prices of performance obligations. Straight-line recognition of revenue relating to service connection fees.
Reporting revenue on a net versus gross basis (analysis of Group’s involvement acting as principal versus agent).
Estimation of early termination fees charged to customers.
9, 33.16
Impairment of cash generating unit and individual tangible and intangible assets
Key assumptions used to determine recoverable amounts: impairment indicators, models, discount rates, growth rates.
13, 33.14
Leases
Key assumptions used to measure the lease liability and the right of use assets: lease term, discount rate and usage of options. Application of portfolio approach to certain leases.
11, 12, 33.12, 33.13
Useful lives of tangible and intangible assets (excluding goodwill)
The useful lives and the method of depreciation and amortisation.
12, 16.2, 33.13
Property, plant and equipment – investment grants
The assumptions underlying the measurement and recognition of investment grants obtained.
14.1, 14.2, 33.17
Impairment of financial assets
Key assumptions used to determine impairment of financial assets: expected credit loss rate (including incorporation of forward looking information), grouping of financial assets.
15, 30, 33.20
Provisions
The assumptions underlying the measurement of provisions for claims and litigation. Provisions for employment termination expense: discount rates, number of employees, employment duration, individual salary and other assumptions.
15
Dismantling costs
The assumptions underlying the measurement of provision for the estimated costs for dismantling and removing the asset and restoring the site on which it is located.
17, 33.21, 33.22
Employee benefits
Discount rates, salary increases, retirement age, staff turnover rates and other. Model and assumptions underlying the measurement of fair values of share-based payment plan.
23, 24, 33.17
Fair value of derivatives and other financial instruments
Model and assumptions underlying the measurement of fair values.
26, 33.19
Income tax
Assumptions used for recognition of deferred tax assets. Assumptions used to determine taxable results and tax bases for uncertain tax treatments.
33.18
Allowance for slow moving and obsolete inventories
Methodology used to determine net realizable value of inventories.
33. Significant accounting policies