Determining the present value of the minimum lease


If a company is determining the present value of the minimum lease payments under a lease, what interest rate should be used as the discount rate using IFRS?

A) The lessor's implicit interest rate if it is known; otherwise the company's incremental borrowing rate.

B) The company's incremental borrowing rate, even if the lessor's implicit interest rate is known.

C) The lessor's implicit interest rate if it is known and if it is lower than the company's incremental borrowing rate.

D) The lessor's implicit interest rate if it is known and if it is higher than the company's incremental borrowing rate.

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Accounting Basics: Determining the present value of the minimum lease
Reference No:- TGS078219

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