IAS 36 – Impairment

Good afternoon Sir!

in reading about ias 36, in an answer to a question, the examiner had this to say:

1. that companies face the issue of applying ias 36 in times of ongoing uncertainty.

and one of the issues was valuation. Within valuation he said:

-the use of DCF methodology to estimate FVLCS is particularly troublesome.

my question: my first reaction is: FV is a number! its a figure u get from the market. so how can u use DCF to get FVLCS in the first place?? and u get this number at the time u perform the test.

is the examiner implying that justification for using DCF for FVLCS is not allowed but the companies are doing it anyway?

pls shed some light on it.

secondly, DCF is applicable in VIU. which i understand

regards