Discount rate

This topic has 1 reply, 2 voices, and was last updated 7 years ago by P2-D2.

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July 7, 2018 at 2:17 pm #461231
zkaay
Participant
- Topics: 212
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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
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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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