IRI: Difference between revisions
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imported>Doug Williamson (Layout.) |
imported>Doug Williamson (Update and expand for Incremental borrowing rate.) |
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''Financial reporting'' | ''Financial reporting''. | ||
Interest Rate Implicit in a lease, in relation to IFRS 16, Leases. | Interest Rate Implicit in a lease, in relation to IFRS 16, Leases. | ||
This is the internal rate of return of the lease cash flows, including the capital value of the leased asset. | This is the internal rate of return of the lease cash flows, including the capital value of the leased asset. | ||
If the IRI is determinable, then IFRS 16 requires the IRI to be used as the discount rate for calculating related lease liabilities and assets for reporting under IFRS 16. | |||
If the IRI is not determinable, the lessee's Incremental borrowing rate must be used instead. | |||
==See also== | ==See also== | ||
*[[DIA]] | |||
*[[IFRS 16]] | *[[IFRS 16]] | ||
*[[Implied rate of interest]] | *[[Implied rate of interest]] | ||
*[[ | *[[Incremental borrowing rate]] | ||
*[[Internal rate of return]] | |||
*[[International Financial Reporting Standards]] | |||
*[[Lease]] | *[[Lease]] | ||
*[[RV]] | *[[RV]] | ||
Revision as of 19:28, 3 February 2018
Financial reporting.
Interest Rate Implicit in a lease, in relation to IFRS 16, Leases.
This is the internal rate of return of the lease cash flows, including the capital value of the leased asset.
If the IRI is determinable, then IFRS 16 requires the IRI to be used as the discount rate for calculating related lease liabilities and assets for reporting under IFRS 16.
If the IRI is not determinable, the lessee's Incremental borrowing rate must be used instead.
