alleryStart learning →The discount rate used for value in use should be:
AA post-tax rate of the enterprise
BA pre-tax rate reflecting market assessments
CThe coupon rate on the latest debenture
DThe rate set by the central bank
Answer & Solution
Correct answer: B. A pre-tax rate reflecting market assessments
The rate should be pre-tax and reflect current market assessments of time value of money and risks specific to the asset.
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Related questions
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: