mpact on the financial statements? 2. What are four examples of estimation uncertainty that could result in a material adjustment in future years? 3. Consider an entity that reports an asset at fair value, where the fair value is based on recently observed market prices. If it is likely that this value might change significantly within the next year, should the entity disclose the estimation uncertainty? Explain your answer. Judgment Case 2: Estimations on the Balance Sheet Part 1: Read paragraph OB11 of Statement of Financial Accounting Concepts Framework for Financial Reporting: Chapter The Otjective of General Purpose Financial Reporting, and Qualitative Characteristics of Useful Financial information. What does FASB say about the degree to which the balance sheet is made up of estimates, as opposed to exact depictions of the underlying economic posi- tion of the entity? Part 2: The disclosures related to critical accounting estimates and judgments were previously seen in Exhibit 32 for Telefonaktiebolaget LM Ericsson (Ericsson).The balance sheets are presented below and on the following page. Focusing on Ericsson's assets,do you agree with the FASB's assessment about the degree to which the balance sheet is made up of estimates? Explain your answer. TELEFONAKTIEBOLAGET LIMERICSSON DECEMBER 31, 2013 CONSOLIDATED BALANCE SHEET 2013 2012 December 31, SEK million Notes Assets Non-current assets C10 Intangible assets SEK 3,348 SEK 3,840 Capitalized development expenses 30,404 31.544 15,202 12,815 Intellectual property rights, brands and other intangible assets 11,493 C11, C26, C27 Property, plant and equipment Financial assets 2,568 C12 Equity in joint ventures and associated companies C12 Other investments in shares and participations 1,294 C12 Customer finance receivables, non-current Other financial assets, non-current 12,321 Deferred tax assets SEK 81,742 SEK 78,294 mpact on the financial statements? 2. What are four examples of estimation uncertainty that could result in a material adjustment in future years? 3. Consider an entity that reports an asset at fair value, where the fair value is based on recently observed market prices. If it is likely that this value might change significantly within the next year, should the entity disclose the estimation uncertainty? Explain your answer. Judgment Case 2: Estimations on the Balance Sheet Part 1: Read paragraph OB11 of Statement of Financial Accounting Concepts Framework for Financial Reporting: Chapter The Otjective of General Purpose Financial Reporting, and Qualitative Characteristics of Useful Financial information. What does FASB say about the degree to which the balance sheet is made up of estimates, as opposed to exact depictions of the underlying economic posi- tion of the entity? Part 2: The disclosures related to critical accounting estimates and judgments were previously seen in Exhibit 32 for Telefonaktiebolaget LM Ericsson (Ericsson).The balance sheets are presented below and on the following page. Focusing on Ericsson's assets,do you agree with the FASB's assessment about the degree to which the balance sheet is made up of estimates? Explain your answer. TELEFONAKTIEBOLAGET LIMERICSSON DECEMBER 31, 2013 CONSOLIDATED BALANCE SHEET 2013 2012 December 31, SEK million Notes Assets Non-current assets C10 Intangible assets SEK 3,348 SEK 3,840 Capitalized development expenses 30,404 31.544 15,202 12,815 Intellectual property rights, brands and other intangible assets 11,493 C11, C26, C27 Property, plant and equipment Financial assets 2,568 C12 Equity in joint ventures and associated companies C12 Other investments in shares and participations 1,294 C12 Customer finance receivables, non-current Other financial assets, non-current 12,321 Deferred tax assets SEK 81,742 SEK 78,294
