My grammar is 💯 good I
7301 Points
Posted on 09 June 2021
That is the future value measurement and one must discount it to know the present value.
VIU during impairment also discounts all future CGU Cashflows using a pre tax discount rate to know the recoverable amount while testing for impairment,
Mostly it’s like rule of thumb that accounting numbers will be in historic cost or it’s fair value in PV terms.