AASB 1023 requires which discount rate to be applied to an outstanding claims liability?

Question

Quizplus · Accepted Answer

AASB 1023 requires the use of risk-free discount rates based on current observable and objective rates. This is because outstanding claims liabilities represent the present value of expected future cash outflows that are largely free of credit risk, and thus the risk-free rate is appropriate for discounting these future cash flows.

AASB 1023 Requires Which Discount Rate to Be Applied to an Outstanding