Under ASPE,assuming all information is available,which rate is used by the lessee in the minimum lease calculation?
A)Implicit borrowing rate.
B)Lessee's incremental borrowing rate.
C)Lower of the incremental and implicit rate.
D)Either the incremental or implicit rate.

Question

Quizplus · Accepted Answer

Under ASPE, the lessee uses the lower of the lessee's incremental borrowing rate and the implicit rate in the lease for the minimum lease payment calculation.

Under ASPE,assuming All Information Is Available,which Rate Is Used by the Lessee