Financial results

5.3 Professional judgment

The following issues of the accounting principles (policy) were largely influenced by the accounting estimates and the professional judgment of the management:

Impairment of financial assets

The Group evaluates whether there is an objective indication of impairment of a financial asset/group of financial assets. Indications of impairment are events or groups of events that took place after the initial recognition of an asset or a group of assets and could have adverse effect on the expected future cash flows of the financial asset or group of financial assets. Impairment loss is estimated at the moment of recognition of indications of impairment.

More information on impairment of financial assets has been presented in Notes 5.6.7, 13, 20 and 24.

Deferred tax asset

The Group recognizes the deferred tax asset based on the assumption that it will generate tax profit sufficient to apply the asset. Deterioration of future tax performance could make the assumption groundless.

Details on deferred tax assets have been presented in Note 16.

Classification of leases

The Group classifies leases to operating and finance leases based on the attribution of risks and rewards from the underlying asset to the lessor or the lessee. The assessment is based on the economic substance of each transaction. Lease agreements have been presented in detail in Notes 38 and 39.