ProvisionForums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › ProvisionThis topic has 1 reply, 2 voices, and was last updated 12 years ago by MikeLittle.Viewing 2 posts - 1 through 2 (of 2 total)AuthorPosts November 16, 2012 at 11:06 am #55381 edmundchanMemberTopics: 16Replies: 6☆Dear Mike,I do not understand the rationale behind the use of pre-tax discount rate in determining the provision amount. Would you mind advising me why?And other than provision, should we use pre-tax discount rate as well in discounting the financial assets, like the loan and other receivables?Thanks November 16, 2012 at 11:12 am #107634 MikeLittleKeymasterTopics: 27Replies: 23200☆☆☆☆☆Hi EdmundWe use it because that’s the rate which is specified – it’s not something which I’ve made up and could change next week if I wanted!AuthorPostsViewing 2 posts - 1 through 2 (of 2 total)You must be logged in to reply to this topic.Log In Username: Password: Keep me signed in Log In