Under IFRS,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

The lessee uses the implicit borrowing rate in the minimum lease calculation under IFRS, if it is readily determinable. If not, the lessee's incremental borrowing rate is used.

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