32 An accounting policy may require items in financial statements to be measured in a way that involves measurement uncertainty-that is, the accounting policy may require such items to be measured at monetary amounts that cannot be observed directly and must instead be estimated. In such a case, an entity develops an accounting estimate to achieve the objective set out by the accounting policy. Developing accounting estimates involves the use of judgements or assumptions based on the latest available, reliable information. Examples of accounting estimates include:

(a) a loss allowance for expected credit losses, applying IFRS 9 Financial Instruments;

(b) the net realisable value of an item of inventory, applying IAS 2 Inventories;

(c) the fair value of an asset or liability, applying IFRS 13;

(d) the depreciation expense for an item of property, plant and equipment, applying IAS 16; and

(e) a provision for warranty obligations, applying IAS 37.