CERTYNEX IFRS ACADEMY

While reviewing the value in use of a Kerlande plant, you note the following items. Which of them must be corrected?

The plant loan's annual repayments are deducted from the cash flows.

Income tax payments are excluded from the cash flows.

Real cash flows are discounted at a nominal rate.

The real cash flows include the expected increase in the price of a component, above general inflation.

An income tax refund expected next year is added to the inflows.