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What Discount Rate Does AASB 119 Require to Be Used

Question 29

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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