What is the WACC and Why the mentioned IFRS

This morning exhausted after a hard week of partial, I studied some NICs, especially 41 and 36 and there was something that piqued my curiosity it is that both standards in a few paragraphs mentioned bring to present value flows expected an appropriate discount rate.

The standard requires the use of a discount rate that reflects current market conditions on the time value of money and the specific risks of the asset. Generally you can not be obtained directly from the market a specific ratio for active and, in these cases, charges related to the company, such as WACC ( "weighted avarage cost of capital") that usually is the most used will be made. Which leads us to ask, What is the WACC?
Before understanding that is the WACC must understand well what is the ratio of cost of capital with the minimum performance required. The minimum performance required is% investment that should generate investment ONLY to compensate for using shareholder to finance the necessary capital.
This minimum required performance is called capital cost of the investment. It is so called because the required performance is what the company should earn its capital investment in a project to reach breakeven.
Therefore it is said that% (required performance) is the capital cost of the investment. The terms minimum performance required, appropriate discount rate and cost of capital are essentially the same.
So what is the WACC?

The WACC is simply the cost of capital sources (liabilities + equity), which were used to finance the (permanent or long-term) structural assets.
The WACC is the minimum required performance you need to win a company to satisfy all of its investors, which includes shareholders, bondholders and preferred stockholders.

WACC= [Ke x E/(E+D)]+[Kd x (1-T)  x D/(E+D)]

Where: E = Equity
D = Debt
Ke = Cost of equity
Kd = Cost of debt
T = Rate of income taxes and workers

* Will be done in this case only mention of the variables in the formula, another time will explanation of each.

Ke = Rf + B (Rm - Rf) + Rp

The cost of equity (Ke) was estimated using the CAPM (Capital Asset Pricing Model):

Rf is equal to the risk-free rate. Rf is estimated as the expected return on the benchmark 10-year Treasury
Rm-Rf equals the market risk premium. It is estimated assuming that investors expect future returns similar to those obtained in the past by having equity investments through a diversified portfolio in excess of expected returns on fixed income without risk.
Beta (leveraged or levered) is equal to the measure of systematic risk. levered beta is estimated by the following formula:  (levered) =  unlevered x (1 + D / E). The betas (leveraged and unleveraged) are obtained from specialized publications produced by investment advisory firms and investment banks.
Rp equivalent to country risk. The country risk premium is derived from the spread of the EMBI bonds over US Treasury bonds long term. As in Peru there are no data Rf, Rm-Rf or betas, in practice data from international markets to the country risk premium is added are used.

For example, the WACC out 7.12% which represents the minimum performance required (cost of capital), as already explained, this means that the investment should cover at least 7.12% of capital is the return on investment ( ROI) must cover at least 7.12%. If the ROI is less than the WACC, then it is not covering the cost of investment (also called performance required), to generate investment returns ROI must be greater than WACC.
The WACC is used as discount rate to bring present value of future cash flows that represents the minimum required performance is expected from the investment.

refreshing conclusions, the WACC is the weighted average cost obtained from non-current and equity liabilities, this represents the minimum performance required (cost of capital) ie the minimum that should give me investment, as to generate profitability ROI (return on investment) must be greater than required performance (WACC). WACC not be confused, minimum required performance or cost of capital in the fund represent the same "NECESSARY MINIMUM" as already explained. IFRS talk about using a discount rate that reflects current market conditions, putting it into practice is difficult for it is easier to use the WACC. And you already know how to calculate !.

Source: finance- foundation of Ross; Practical application of IAS 36 -Ernst & Young; NIC36; NIC41 valorización- Deloitte report.