• Thomas Tsang

FRS116 borrowing rate

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.

17 views0 comments

Recent Posts

See All

In contract revenue to recognise using input method, one of the key audit procedures is to ascertain the budgeted cost of the project contract is reasonable. We need to test the underlining assumptio

For change of accounting policy for PPE from cost model to revaluation model. It is not follow FRS 8 as exempted from prior year adjustment. The change will apply prospectively from the date of reva

When receivables classified from current to non-current, it needs to be measured at fair value upon reclassification. The different will be charged to profit and loss. It is because the receivables