alleryStart learning →Separate discount rates for different periods apply when:
ARisks differ across periods
BThe asset is held for sale
CThe asset is a financial asset
DThe enterprise has no borrowings
Answer & Solution
Correct answer: A. Risks differ across periods
A single rate is normal, but different rates apply where value in use is sensitive to differing risks or the term structure of interest rates.
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: