The discount rate used in the determination of the value in use of an asset may be selected from rates used for similar assets in the market.

Question

Quizplus · Accepted Answer

This statement is true. The discount rate used in determining the value in use of an asset may be chosen by referencing rates used for similar assets in the market. This is because the discount rate represents the required return on investment for the asset, and the market rate for that type of asset is a useful reference point for determining what that required return may be.

The Discount Rate Used in the Determination of the Value