More and more often we observe negative yields on government and even corporate bonds. Do you use a negative rate for discounting purposes? E.g. for provisions under IAS 37 or as incremental borrowing rate under IFRS 16.
I tried to google this issue but there is surprisingly little meaningful content.
One EFRAG paper, for example, states that it makes sense to use negative interest rate for discounting. This means that someone effectively pays you to hold money.
https://www.efrag.org/Assets/Download?a ... -04-11.pdfEFRAG TEG disagreed with this assessment – in a negative rate environment, the present value of a future cash flow is higher, because there is a cost to hold cash.