Company: RTNTF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001628280-25-006642
Chunk: 283

Company: RIO TINTO LTD
Filing Date: 2025-02-20
Form: 20-F
Chunk 283
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 of numerical and narrative reporting. Sources used in making this assessment would include, for example: published analyst consensus measures, experience gained in formal and informal dialogue with users (including regulatory correspondence), and peer group benchmarking. d. Summary of key judgements or other relevant judgements made in applying the accounting policies

The preparation of the financial statements requires management to use judgement in applying accounting policies and in making critical

accounting estimates.

These judgements and estimates are based on management’s best knowledge of the relevant facts and circumstances, having regard to

previous experience, but actual results may differ materially from the amounts included in the financial statements. Areas of judgement in the

application of accounting policies that have the most significant effect on the amounts recognised in the financial statements and 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 are noted below. Further information is contained in the notes to the financial statements.

Summarised below are the key judgements that we have taken in the application of the Group’s accounting policies for 2024 and how they

compare to the prior year. Taking a different judgement over these matters could lead to a material impact on the 2024 financial statements.

More detail on the judgement can be found in the respective notes.

| Key judgements                                                 | 2024 | 2023 | Context                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| Indicators of impairment and impairmentreversals (note 4)      |    a |    a | Various cash-generating units of the Group that have been impaired or testedfor impairment in previous years, are at higher risk of impairment charge orreversal in the future due to carrying value and recoverable amounts beingsimilar.  Whilst we monitor all assets for impairment, these assets aremonitored more closely for indicators of further impairment or impairmentreversal as such adjustments would likely be material to our results.                                                       |
| Deferral of stripping costs (note 13)                          |    a |    a | The deferral of stripping costs is a key judgement in open-pit miningoperations as it impacts the amortisation base for these costs, calculated on aunits of production basis; this involves determining whether multiple pits areconsidered separate or integrated operations, which in turn influences theclassification of stripping activities as pre-production or production phase. Thisjudgement relies on various factors that are based on the uniquecharacteristics and circumstances of each mine. |
| Estimation of asset lives (note