CERTYNEX IFRS ACADEMY

For a single obligation, Pyrane estimates the most likely outcome at 500,000, but most of the other possible outcomes are lower. What is the effect on the best estimate?

None: only the most likely outcome matters for a single obligation.

The provision is set at the lowest possible outcome.

The best estimate is below 500,000.

The provision is set at the arithmetic average of all possible outcomes, without weighting.