CERTYNEX IFRS ACADEMY

For a clean-up obligation with no quoted price, an analyst computes the present value of the outflows Fontvane expects to bear, with no margin added, on the grounds that "Fontvane asks for no compensation for its own debt". What is the error?

He should have used the settlement price with the authority rather than a present value.

He omits the compensation a market participant would require to assume the obligation.

He should have discounted at the expected inflation rate.

He should not have measured this liability at fair value for lack of a quoted price.