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Discount rates

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

  • This topic has 1 reply, 2 voices, and was last updated 4 years ago by Stephen Widberg.
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  • June 25, 2020 at 7:42 pm #574703
    Sneha00
    Member
    • Topics: 46
    • Replies: 20
    • ☆☆

    Sir please can you explain what all discount rate we use? For impairment- in value in use we use pre tax risk adjusted to cash flow rate
    For provision which rate is used?

    June 26, 2020 at 2:50 pm #574742
    Stephen Widberg
    Keymaster
    • Topics: 16
    • Replies: 3396
    • ☆☆☆☆☆

    IAS 37 – there is some debate over this – all that is clear is that it should be a pre-tax rate.

    See p12/13 of below for debate but it’s way over the top for your exam

    https://www.ifrs.org/-/media/project/discount-rates/project-summary.pdf

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