Home Annual Statements Financial Statements 2012 Notes to the consolidated financial statements Critical judgements and estimates
The preceding pages provide a comprehensive description of Schiphol Group’s accounting policies. Management’s judgement will be decisive in determining the way in which they are applied in certain situations. Preparation of the financial statements means that judgements, estimates and assumptions by management influence the amounts recognised for assets, liabilities, revenue and expenses.
Management’s judgements in applying IFRS that have a significant effect on the financial statements concern the classification of associates as subsidiaries, joint ventures or associates and the assessment of investment property.
The fair value of the land recognised under ‘investment property’ is measured annually by external and in-house valuers. A different part of the land holdings is appraised by independent external valuers each year. The best evidence of fair value is the current price of similar investment property and other contracts in an active market. In the absence of such information, Schiphol Group determines the amount within a range of reasonable fair value estimates.
Other estimates relates particularly to:
- impairment of goodwill and other non-current assets;
- useful life and residual value of assets used for operating activities;
- deferred tax assets;
- actuarial assumptions with regard to employee benefit provisions;
- assets and liabilities with regard to claims and disputes.
Further information is presented in the notes on these items. No other critical assumptions on measurement were made in applying the accounting policies except for those disclosed in the notes to the financial statements. Estimates and the related assumptions are based on management’s experience and insights and developments in external factors which can be regarded as reasonable. Judgements and estimates are subject to change as facts and insights change and may be different in another reporting period. The differences in outcome are recognised through the balance sheet or income statement depending on the nature of the item. Actual results could differ from previously reported results based on estimates and assumptions.