CERTYNEX IFRS ACADEMY

The financial controller of Brivane is preparing a present value estimate for an impairment test. Which of the following practices comply with the general principles of Appendix A of IAS 36? (several answers)

Increasing the discount rate for a risk already reflected in the adjusted cash flows, out of prudence

Using a discount rate whose assumptions are consistent with those of the cash flows

Ensuring that the cash flows and the rate are free from bias

Reflecting the range of possible outcomes rather than a single arbitrary amount

Deliberately understating projected cash flows to guard against a future loss