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Incremental borrowing cost

  • Writer: Thomas Tsang
    Thomas Tsang
  • Dec 31, 2019
  • 1 min read

FRS116 Leases requires lease to discount at incremental borrowing cost rate. The rate should be in similar terms of a similar transaction in similar economic environment. That is in country, currency of the underlying assets being transacted. It is hypothetical that the lease were transacted. It was not how you can finance the lease by yourself.

 
 
 

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