alleryStart learning →A starting point for the discount rate may be:
ADividend yield of the previous year
BHistorical cost of old debentures
CBank rate on the date of purchase
DIts own incremental borrowing rate
Answer & Solution
Correct answer: D. Its own incremental borrowing rate
The enterprise may start from its weighted average cost of capital, its incremental borrowing rate or other market borrowing rates, then adjust for specific risks.
Keep practising AS 28 Impairment of Assets
Browse all AS 28 Impairment of Assets questions for CA Inter, or explore more Accounting topics.
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: