When Measuring a Liability at Present Values,the Discount Rate to Be

question 1

Multiple Choice

When measuring a liability at present values,the discount rate to be used,according to paragraph 47 of AASB 137,is:

• A) The pre-tax rate that reflects the current market assessments of the time value of money and the risks specific to the liability.
• B) The after-tax rate that reflects the current market assessments of the time value of money and the risks specific to the liability.
• C) The pre-tax rate that reflects the current market assessments of the time value of money and the risks specific to the liability, and shall also reflect risks for which future cash flows have already been adjusted.
• D) The pre-tax risk free rate.
• E) The pre-tax rate for a government bond of the equivalent duration.

---

Definitions:

Homeless

People lacking stable and permanent housing or adequate living conditions.

Absolute Homelessness

Situation of individuals who live either in emergency shelters or on the street.

Concealed Homelessness

The situation of individuals who do not have a home of their own and stay with friends, family, or in other temporary arrangements, often not visible in homeless statistics.

Relative Homelessness

State of those who have housing, but who live in substandard or undesirable shelter and/or who may be at risk of losing their homes.