47 The discount rate (or rates) shall be a pre-tax rate (or rates) that reflect(s):

(a) current market assessments of the time value of money, represented by a risk-free rate; and

(b) risks surrounding the amount or timing of the expenditure required to settle the obligation (as described in paragraphs 42–43) if those risks are not reflected in the estimates of the future cash flows the risks specific to the liability. The discount rate(s) shall not reflect risks for which future cash flow estimates have been adjusted.

47 A The discount rate (or rates) does (do) not reflect non-performance risk—the risk that the entity will not settle the obligation.