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Commission Regulation (EC) No 1126/2008 of 3 November 2008 adopting certain international accounting standards in accordance with Regulation (EC) No 1606/2002 of the European Parliament and of the Council (Text with EEA relevance) · European Union

| A8 | The expected cash flow approach also allows use of present value techniques when the timing of cash flows is uncertain. For example, a cash flow of CU1 000 may be received in one year, two years or three years with probabilities of 10 per cent, 60 per cent and 30 per cent, respectively. The example below shows the computation of expected present value in that situation. Present value of CU1 000 in 1 year at 5 % CU952,38 Probability 10,00 % CU95,24 Present value of CU1 000 in 2 years at 5,25 % CU902,73 Probability 60,00 % CU541,64 Present value of CU1 000 in 3 years at 5,50 % CU851,61 Probability 30,00 % CU255,48 Expected present value CU892,36

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Source: EUR-Lex (Cellar) · retrieved 2026-11-08 · Text as adopted (Official Journal); later amendments are not incorporated in this text.