The incremental borrowing rate is defined in FRS116. It is not the borrowing rate of the company. So the challenge is how to get the incremental birr rate for a leased asset.
For example, a leased property in Singapore. We can consider to use 3 months SIBOR as starting point as property loan in Singapore is based on SIBOR+. The challenge is how much to adjust upward to determine the incremental borrowing rate of the property to a company in concern.
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