CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS. In the application of Quiport’s accounting policies, which are described in note 2, the Management are required to make judgements (other than those involving estimations) that have a significant impact on the amounts recognized and to make estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects current and future periods. The following critical accounting estimates and judgments have been used by Quiport management in the process of applying accounting criteria:
CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS. In the application of Quiport’s accounting policies, which are described in note 3, the Management are required to make judgements (other than those involving estimations) that have a significant impact on the amounts recognized and to make estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects current and future periods. The following critical accounting estimates and judgments have been used by Quiport management in the process of applying accounting criteria:
4.1 Critical judgments in the application of the Corporation's accounting policies Asset impairment - At the end of the period, the Corporation determines whether there are any indicators of impairment of its assets by the examination of internal and external information.
CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS. The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying Njord Group's accounting policies. Changes in assumptions may have a significant impact on the financial statements in the period the assumptions changed. Management believes that the underlying assumptions are appropriate. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements below. Estimates and judgments are continually evaluated and are based on historical experience as adjusted for current market conditions and other factors. The preparation of consolidated financial statements in conformity with IFRS requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, income and expenses and the disclosure of contingent assets and liabilities. Actual amounts may differ from these estimates. In particular, Management must make estimates and assumptions in the following areas: Njord Group evaluates the carrying amounts of the vessels to determine if events have occurred that would require a modification of their carrying amounts. The valuation of vessels is reviewed based on events and changes in circumstances that would indicate that the carrying amount of the assets might not be recovered. In assessing the recoverability of the vessels, Njord Group reviews certain indicators of potential impairment such as reported sale and purchase prices, market demand and general market conditions. Furthermore, market valuations from leading, independent and internationally recognised shipbroking companies are obtained on a quarterly basis as part of the review for potential impairment indicators. If an indication of impairment is identified, the need for recognising an impairment loss is assessed by comparing the carrying amount of the vessels to the higher of the fair value less cost to sell and the value in use. The review for potential impairment indicators and projection of future undiscounted and discounted cash flows related to the vessels is complex and requires Njord Group to make various estimates including of future freight rates, earnings from the vessels and discount rates. All of these factors have been historically volatile. The carrying amounts of Njord Group's vessels may not represent their fair marke...
