IFRS 16 - Determination of index/rate

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Jessa Marie
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Joined: 14 Oct 2020, 09:39

IFRS 16 - Determination of index/rate

Post by Jessa Marie »

Hello everyone, I would like to ask about the interest rates used to compute the lease liability:

a. interest rate implicit in the lease
b. lessee's incremental borrowing rate
c. Consumer price index/benchmark index (for variable lease)

How are these rates determined? and who determines them?

Also, do you have a link to an example where variable leases based on CPI or benchmark indexes are applied?

Your help is very much appreciated. Thank you! Just need some help understanding some things, I find IFRS 16 quite complicated. Thank you again :)
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Marek Muc
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Re: IFRS 16 - Determination of index/rate

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Jessa Marie
Posts: 9
Joined: 14 Oct 2020, 09:39

Re: IFRS 16 - Determination of index/rate

Post by Jessa Marie »

I was about to update my question. :lol: Thank you very much for the help as always! :D
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