CERTYNEX IFRS ACADEMY

Fenrival prepares its projections at constant prices, excluding general inflation. It nevertheless expects an increase in the price of energy well above general inflation. Which approach is consistent?

Ignore the energy price increase, since the cash flows are at constant prices, and discount at a real rate.

Include the specific energy price increase and discount at a nominal rate, since price increases appear in the cash flows.

Include the specific energy price increase and discount at a real rate.

Add general inflation to all cash flows except energy and discount at a real rate.