The extent and speed of deterioration of economic conditions has heightened the need for companies to consider in great detail and perhaps refresh and possibly change their view and approach to areas of their financial statements which are subject to estimation and judgement. Particular attention also needs to be given to areas which are sensitive to changes in underlying assumptions that may impact an entity’s reported performance. Greater attention is also warranted in many cases to the disclosure and description of principal risks and uncertainties in the directors’ report, writes Brendan Sheridan.