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An entity's CGU recoverable amount is based on VIU. The discount rate disclosure required is:
AOnly the current period rate
BOnly the pre-tax rate
CThe discount rate(s) used in the current estimate AND previous estimate (if any) of value in use
DOnly the post-tax rate
Answer & Solution
Correct answer: C. The discount rate(s) used in the current estimate AND previous estimate (if any) of value in use
Both current and previous period discount rates must be disclosed (paragraph 134(d)(v) / paragraph 130(g)). Comparability across periods of the discount rate used in VIU is a key element of the disclosure regime.
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