alleryStart learning →If the discount rate includes inflation, cash flows are estimated in:
AReal terms without inflation
BTerms net of income tax paid
CTerms of a foreign currency
DNominal terms with inflation
Answer & Solution
Correct answer: D. Nominal terms with inflation
Cash flows and discount rate must rest on consistent inflation assumptions, so a rate including inflation pairs with nominal cash flows.
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An enterprise applying AS 17 discloses impairment losses by:A revalued asset's market value basis and negligible disposal costs mean the asset is:For a small and medium-sized company, value in use may be measured by:Impairment of deferred tax assets is dealt with under:Disclosing key assumptions is:If recoverable amount is value in use, a material loss disclosure includes:A class of assets under AS 28 means a grouping of assets of:AS 28 disclosures of impairment losses are required for each: