Annual Report 2016
Notes to the Financial Statements
Principal accounting judgements, estimates and
assumptions
In the application of the accounting policies,
which are described above, the Directors are
required to make judgements, estimates and
assumptions in respect of the carrying amounts
of assets and liabilities recognised in the financial
statements. These are based on historical
experience, future forecasts and other factors that
are considered to be relevant. It is recognised
that historical experience and forecasts change
over time and these judgements, estimates and
assumptions are therefore reviewed and amended
where necessary on a regular basis. However,
it is also recognised that the actual outcomes
may still differ to the judgements, estimates and
assumptions made. Provided below are details of
the principal accounting judgements, estimates
and assumptions that the Directors have made
when applying the Group’s accounting policies
and that have the most significant effect on the
amounts recognised in the financial statements.
Accrued income
An estimate of water consumption by metered
customers of South Staffs Water since