What Discount Rate Does AASB 119 Require to Be Used

question 9

Multiple Choice

What discount rate does AASB 119 require to be used to discount estimated future cash outflows associated with the relevant employee entitlements?

• A) Risk-adjusted, organisation-specific discount rate.
• B) Market-determined, organisation-specific discount rate.
• C) Inflation adjusted, real rate of return required on equity financing.
• D) The interest rate on high quality corporate bonds with terms to maturity that match the terms of the related liabilities.
• E) None of the given answers.

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