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AASB 1028 A nd C hoice O f D iscount R ate : G ross O r N et O f T axation E ffects ?
Author(s) -
Houghton K.A.,
Knox D.M.
Publication year - 1995
Publication title -
australian accounting review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.551
H-Index - 36
eISSN - 1835-2561
pISSN - 1035-6908
DOI - 10.1111/j.1835-2561.1995.tb00380.x
Subject(s) - allowance (engineering) , business , compensation (psychology) , economics , operations management , psychology , psychoanalysis
This paper discusses the issues arising from the choice of discount rate to be included in the present‐value calculation required for the measurement of liabilities relating to employee entitlements in company accounts. We look at the implications of AASB 1028, as it concerns the choice of a discount rate before or after an allowance for taxation. AASB 1028 relates to most employee entitlements including long‐service leave, accumulated annual leave and workers' compensation, where the accounting entity self‐insures.