professor can you tell me the difference between the 2sentences?
1st- The disclosure note does not say how many years the cash flow forecasts covered.
V/s
2nd-The note does not say how many years’ worth of cash flows have been extrapolated beyond the end of the budgeted period.
Ask the Tutor ACCA SBR
value in use- cash flow forecast
5y ago#1Company may estimate cash flows through judgement or by extrapolation (for longer periods of time).
If you are interested pages 30 onwards of:
https://www.grantthornton.global/globalassets/1.-member-firms/global/insights/article-pdfs/2014/ias36-impairment-of-assets-a-guide-to-applying-ias36-in-practice.pdf#:~:text=IAS%2036%E2%80%99s%20guidance%20is%20detailed%2C%20prescriptive%20and%20complex,also%20requires%20a%20significant%20degree%20of%20professional%20judgement.
But, a bit over the top for the exam!
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