Discounting a Provision and Unwinding the Discount
This lesson is part of the course
In this lesson
You discount the three settlement instalments to the provision at 31 Dec 2026, then roll it forward with the unwinding of the discount (a finance cost) until the last payment brings it to 0.
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Lessons in this course
- Recognise, Disclose or Ignore? The IAS 37 Decision Table Locked
- Best Estimate for a Large Population: Expected Value of Warranties Locked
- Best Estimate for a Single Obligation: the Most Likely Outcome Locked
- Discounting a Provision and Unwinding the Discount Locked
- Decommissioning & Restoration: Provision Added to the Asset Cost Locked
- Onerous Contracts: Unavoidable Costs vs Economic Benefits Locked
- Restructuring Provisions: What Qualifies and Which Costs Go In Locked
- The Provision Movement Table: Opening, Additions, Used, Released, Unwinding, Closing Locked