National Grid 2010 Annual Report Download - page 37

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National Grid Gas plc Annual Report and Accounts 2009/10 35
the financial statements, and the key areas are summarised
below.
Areas of judgement that have the most significant effect on the
amounts recognised in the financial statements:
The categorisation of certain items as exceptional items
and remeasurements and the definition of adjusted
earnings – note 4.
The exemptions adopted on transition to IFRS on 1 April
2004.
The recognition of defined benefit pension costs as if the
National Grid UK Pension Scheme was a defined
contribution scheme – accounting policy M.
Hedge accounting – accounting policy P.
Key sources of estimation uncertainty that have a significant
risk of causing a material adjustment to the carrying amounts of
assets and liabilities within the next financial year:
Review of residual lives, carrying values and impairment
charges for intangible assets and property, plant and
equipment – accounting policies D, E and F.
Valuation of financial instruments and derivatives – notes
12, 15 and 27.
Revenue recognition and assessment of unbilled revenue
– accounting policy K.
Environmental provisions – note 21.