Incremental borrowing rate: Difference between revisions

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imported>Doug Williamson
(Update following edits to IBR page.)
imported>Doug Williamson
(Remove surplus link.)
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*[[Interest rate implicit in a lease]]
*[[Interest rate implicit in a lease]]
*[[Lease]]
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Revision as of 21:18, 3 February 2018

Financial reporting - IFRS 16.

(IBR).

The lessee's Incremental Borrowing Rate is a key concept in financial reporting for leases under IFRS 16.


The incremental borrowing rate is the rate the lessee would pay to borrow:

  • Over a term similar to the lease term
  • With a similar security


When the interest rate implicit in the lease cannot be determined, the IBR shall be used instead, to discount the related lease liabilities and assets for reporting under IFRS 16.


See also