Unlike U.S. GAAP, IFRS requires that an entity disclose both (a) management judgments with the most significant effect on the financial statements and (b) information about the major sources of estimation uncertainty that may result in a material misstatement to the carrying values of the entities assets and liabilities. These disclosure requirements are included inApplying IFRS: Enhancing Communication Effectiveness(Links to an external site.). Read pages 39 through 44, and address the following:

• Identify where judgments in the financial statements should be disclosed.
• Identify two examples of judgments that could have a significant impact on the financial statements.
• Identify four examples of estimation uncertainty that could result in a material adjustment in future years?
• Describe whether the entity should disclose the estimation if it is likely that this value might change significantly within the next year. (Consider an entity that reports an asset at fair value when the fair value is based upon recently observed market prices. Cite specific references fromApplying IFRS: Enhancing Communication Effectiveness(Links to an external site.)to support your answer.)
• Cite specific judgments and estimations that have been made in the notes to theHome Depot 2017 Annual Report(Links to an external site.).