AASB 136 does not require the use of present values when determining the recoverable amount of an asset.

Question

Quizplus · Accepted Answer

AASB 136 requires the use of present values when determining the recoverable amount of an asset. The standard states that the recoverable amount should be the higher of the asset's fair value less costs of disposal and its value in use. The value in use should be determined by discounting the estimated future cash flows expected to be generated by the asset using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.

AASB 136 Does Not Require the Use of Present Values