What Discount Rate Does AASB 119 Require to Be Used

question 38

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.

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Definitions:

Binocular Cues

Visual information taken in by two eyes that enable a person to gain a sense of depth and perception of the spatial relationships among objects in the environment.

Monocular Cues

Visual information that allows for perception of depth and distance using one eye only.

Depth Perception

The visual ability to perceive the world in three dimensions and to understand spatial relationships.

Presbyopia

A natural age-related condition where the eye's lens loses its ability to focus properly, making it difficult to see objects up close.