LensCrafters 2015 Annual Report Download - page 195

Notes to the separate financial statements as of December 31, 2015 Page 15 of 77
The following table presents a summary by type of derivative:
2015 2014
Assets Liabilities Assets Liabilities
Commodity swaps - (218,307) - (597,229)
Forwards 705,539 (768,283) 702,604 (4,524,039)
Swaps 690,288 (1,065,248) - -
Collars - (2,053) - -
Total 1,395,827 (2,053,891) 702,604 (5,121,268)
All derivatives are classified as current assets or current liabilities.
3. INFLUENCE OF ESTIMATES
The preparation of financial statements in conformity with IFRS requires management to make estimates and
assumptions that influence the value of assets and liabilities reported in the statement of financial position as well as
revenues and costs reported in the statement of income, and also the disclosures included in the notes to the financial
statements in relation to contingent assets and liabilities as of the date the financial statements were authorized for issue.
Estimates are based on past experience and other relevant factors. Actual results could therefore differ from those
estimates. Accounting estimates are periodically reviewed and the effects of any change are reflected in profit or loss in
the period the change occurs.
The most significant accounting policies requiring greater judgment on the part of management when making estimates
are briefly described below.
• Valuation of receivables. Accounts receivable are adjusted by the allowance for doubtful accounts to reflect their
recoverable amount. The calculation of the amount of write-down requires management to make subjective
judgments based on the available documentation and information relating to customer solvency, and on past trends
and experience;
• Valuation of inventories. Inventories that are obsolete are regularly reviewed and written down if their net realizable
value is lower than their carrying amount. Write-downs are calculated on the basis of management assumptions and
estimates, derived from experience and past results;
• Valuation of deferred tax assets. The valuation of deferred tax assets is based on expectations about forecast taxable
income in future years, which depends on factors that could vary over time and could have significant effects on the
valuation of deferred tax assets;
• Income taxes. The Company is subject to different income tax laws in many jurisdictions. The determination of the
Company's tax liabilities requires management to make judgments about transactions whose tax implications are not
certain at the end of the reporting period. The Company recognizes liabilities that may arise from future inspections
by the tax authorities, based on an estimate of the taxes expected to be paid. If the outcome of such inspections