CERTYNEX IFRS ACADEMY

To calculate the value in use of a fishing vessel, Morvent's analyst must reflect the price for bearing the uncertainty inherent in the vessel and its illiquidity. How can these elements be incorporated?

Solely by adjusting the projected cash flows, since the discount rate can only reflect the time value of money

Either in the cash flows or in the discount rate

Solely by increasing the discount rate, since the cash flows must remain the budget figures without any adjustment

They are not incorporated: value in use reflects only expected cash flows and the time value of money