IFRS requires lesses to.use their incremental rate, unless the implicit rate is known by the lessee and the implicit rate is lower than the incremental rate.

Question

Quizplus · Accepted Answer

IFRS requires lessees to use the interest rate implicit in the lease whenever that rate can be readily determined. If the implicit rate cannot be readily determined, the lessee should use their incremental borrowing rate.

IFRS Requires Lesses To