(e) Use of estimates and judgment:
Preparing financial statements requires management to make judgments, estimations and assumptions that affect the application of accounting policies and the valuation of assets, liabilities, income and expenses presented. Actual results could differ from these estimated amounts.
Relevant estimates and assumptions are reviewed regularly by senior management in order to quantify certain assets, liabilities, income, expenses and uncertainties. Revisions to accounting estimates are recognized in the year in which the estimate is revised and for any future period that is affected.
Some accounting matters particularly involve uncertainties and therefore require a considerable degree of estimation and critical judgment when applying accounting policies. Details on the use of estimates and judgment and their effect on the amounts recognized in the financial statements are included in the following notes:
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Impairment of loans (Notes No. 10, No. 11 and No. 33) |
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Useful lives of intangible assets, property and equipment and investment properties (Notes No. 14, No. 15 and No. 16) |
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Goodwill valuation (Note No. 14) |
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Deferred taxes and income taxes (Note No. 17) |
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Provisions (Note No. 24) |
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Employee benefits (Note No. 25) |
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Commitments and contingencies (Note No. 27) |
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Fair value of financial assets and liabilities (Note No. 40) |