Under IFRS 16, the lessee uses the rate implicit in the lease to calculate leases; under ASPE,
A) the same treatment is used.
B) the lower of the lessee's incremental borrowing rate and the rate implicit in the lease is used.
C) the higher of the lessee's incremental borrowing rate and the rate implicit in the lease is used.
D) the incremental borrowing rate is used.

Question

Quizplus · Accepted Answer

Under ASPE, the lessee uses the lower of the lessee's incremental borrowing rate and the rate implicit in the lease to calculate leases. This is different from IFRS 16, which requires the lessee to use the rate implicit in the lease to calculate leases.

Under IFRS 16, the Lessee Uses the Rate Implicit in the Lease