CERTYNEX IFRS ACADEMY

In the traditional present value approach described in Appendix A of IAS 36, how is the risk specific to the asset built into the measurement?

By weighting several cash flow scenarios by their respective probabilities, the discount rate remaining neutral

Through a single discount rate applied to a single set of cash flows, the most likely one

Twice, out of prudence: once by reducing the cash flows and a second time by increasing the discount rate

It is not built in: the rate is always the risk-free rate