CERTYNEX IFRS ACADEMY

Yzerande's audit committee is examining the methodology note on the discount rate used in its impairment tests. Which of the note's statements are correct?

Separate rates for different periods are used when value in use is sensitive to the term structure of interest rates.

Out of prudence, the rate includes a premium for volume risk, although the cash flows are already weighted by volume scenarios.

The post-tax weighted average cost of capital, used as a starting point, is converted into a pre-tax rate.

The rate may be estimated from the rate implicit in current market transactions for similar assets.

For subsidiaries financed by the parent at 1%, the discount rate used is 1%.