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Discount rate

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Discount rate

  • This topic has 1 reply, 2 voices, and was last updated 7 years ago by P2-D2.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • July 7, 2018 at 2:17 pm #461231
    zkaay
    Participant
    • Topics: 212
    • Replies: 98
    • ☆☆☆

    Hi sir

    Could u plz explain

    1) how did chnaging in discount rate for example (from 5% to 10%) will affect provision of decommissioning

    2) is it allowed to change the discount rate ?

    3) in which cicumstances there maybe change in discount rate

    Thanks

    July 8, 2018 at 8:09 pm #461341
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7231
    • ☆☆☆☆☆

    Hi,

    The discount rate used is the rate that the original decommissioning cost would have been discounted at, so therefore we would not be changing the discount rate when we unwind the discount.

    Thanks

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