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What shall the discount rate used to derive an asset’s value in use in line with IAS 36 be?

1. Either post-tax or pre-tax, but the estimates of future cash flows must be consistent with the selected discount rate.

2. Pre-tax rate.

3. The rate adjusted by the inflation.

4. Post-tax rate.

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Question added by Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies
Date Posted: 2016/01/11
Shazia Anees
by Shazia Anees , Assistant Manager Finance , Arham Trading Company

answer no.2----------------------------------

 

P A Cariappa Appaiah
by P A Cariappa Appaiah , back office executive , Inspire Hond

post - tax rate, is the answer.

Zehab Osman
by Zehab Osman , Accountant , Aldar Consultancy Co.

4. Post-tax rate.---------------

Anish Ahuja
by Anish Ahuja , Finance Specialist - Accounts Payable , Canon Middle East

1. Either post-tax or pre-tax, but the estimates of future cash flows must be consistent with the selected discount rate.

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