IFRS 16 Discount Rates

IFRS 16 Discount Rates

In this video, Saket covers IFRS 16 discount rates, specifically the rate implicit in the lease and the incremental borrowing rate.
Overview

The rate implicit in the lease is the rate that causes the present value of the lease payments and unguaranteed residual value to be equal to the sum of the fair value of the underlying asset and any initial direct costs of the lessor.

Key learning objectives:

  • What is the rate implicit in the lease?

  • What is the incremental borrowing rate?

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Expert
Saket Modi

Saket Modi

Saket is a financial trainer and consultant based out of London. He specialises in advanced accounting, financial reporting and financial analysis, particularly with regards to International Financial Reporting Standards (IFRS), International Public Sector Accounting Standards (IPSAS) and Financial instruments.

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