Which of the following is not an example of an assumption that must be disclosed under AASB 101 Presentation of Financial Statements when future-oriented estimates are necessary to measure the recoverable amount of assets? Select one: a. Useful lives b. Future interest rates c. Future changes in salaries d. Future bad debts
d. Future bad debts.
When there is absence of market price used to measure assets and liabilities than future oriented estimates are necessary to measure the recoverable amount of property, plant and equipment, provision related to future outcome of litigation in progress, long term employee liabilities. So these estimates involve includes assumptions about future changes in salaries, useful lives of assets, future chanfes in the interet rate etc..
Hence future bad debt is not an example of an assumption disclosed under AASB 101