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Performance reporting and performance appraisal

3.2 Accounting estimates

Accounting estimates are assessments of the present status of assets
and liabilities as well as their expected future benefits and obligations.

Examples of accounting estimates include:

 depreciation

 amortisation

 provision measurement.

The effect of a change in an accounting estimate must be recognised
prospectively, by including it in the statement of profit or loss and other
comprehensive income for the current period and future periods.

3.3 Prior period errors

Prior period errors are mis-statements and omissions in the financial
statements of prior periods as a result of not using reliable information
that should have been available.

Prior period errors can result from mistakes or fraud.

Prior period errors are corrected retrospectively (like changes in
accounting policy).

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