Incremental borrowing rate: Difference between revisions
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imported>Doug Williamson (Create page. Sources: The Treasurer Feb 2018, p36 & IBR page.) |
imported>Doug Williamson (Update following edits to IBR page.) |
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==See also== | ==See also== | ||
*[[DIA]] | |||
*[[IFRS 16]] | *[[IFRS 16]] | ||
*[[Internal rate of return]] | *[[Internal rate of return]] | ||
*[[Interest rate implicit in a lease]] | *[[Interest rate implicit in a lease]] | ||
*[[Lease]] | |||
*[[RV]] | *[[RV]] | ||
Revision as of 19:40, 3 February 2018
Financial reporting - IFRS 16.
(IBR).
The lessee's Incremental Borrowing Rate is a key concept in financial reporting for leases under IFRS 16.
The incremental borrowing rate is the rate the lessee would pay to borrow:
- Over a term similar to the lease term
- With a similar security
When the interest rate implicit in the lease cannot be determined, the IBR shall be used instead, to discount the related lease liabilities and assets for reporting under IFRS 16.
