Discounted Cash Flow 2011
A Working Group was formed in mid 2010 and advised the Board on an Exposure Draft that was published in January 2011. The comments received on the Exposure Draft may be viewed here.
A report analysing the comments received was considered by the Board at its meeting in June 2011. Among the changes it agreed to make were:
- to clarify the scope of the paper.
- to improve the distinction between the different inputs required for different types of asset, eg businesses and investment property.
- to expand the discussion on the ways of estimating terminal value.
- to expand the discussion of the different approaches to determining the appropriate discount rate.
- to include a limited number of illustrative examples.
The Board considered a near final version of the TIP at its meeting in March 2012. Board members identified a few further improvements that they felt should be made to the paper. At the end of May the TIP was approved by the Board for publication was issued in July 2012.
Background
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