Explanation:

Accounting estimate is an approximation of the amount to be debited or credited on items for which no precise means of measurement are available. They are based on specialized knowledge and judgment derived from experience and training. They are used in the financial statements to determine the carrying amounts of assets and liabilities and the associated income or expense for the period where such amounts cannot be measured with precision and certainty.

Examples of accounting estimates include:

• Useful life of non-current assets
• Impairment of non-current assets
• Bad debts
• Provision for obsolete and slow-moving stock
• Revalued amounts of non-current assets
• Provision for pension benefits
• Depreciation