I need some pragmatic approach taken for inter group companies that are fully funded by their parent companies.
Is group discount rate appropriate as starting point to determine the entity's incremental borrowing rate.
Discount rate under IFRS 16
Re: Discount rate under IFRS 16
we use our corporate borrowing rate as group discounted rate across all our subsidiaries. Hope this context help
Re: Discount rate under IFRS 16
it all depends on how this group discount rate was determined
two major points to take into account:
- each currency should have its own discount rate
- differences in credit standing between the parent/group and the subsidiary should also be taken into account
two major points to take into account:
- each currency should have its own discount rate
- differences in credit standing between the parent/group and the subsidiary should also be taken into account