Discount rate and IFRS16

One of the hot-topics of the new lease accounting standard (IFRS16) of the International Accounting Standards Board (IASB) is the determination and use of the discount rate for calculating the starting (initial) value of a lease.

In the attached article ‘Discount rate and IFRS16‘, you will find an elaboration of the discount rate, in which -surprisingly– more often than not the implicit interest in the lease can (should?) be applied.

Warning in advance: this is a technical article, so take your time.


In the series of Lease Implementation Dilemmas, the  below dilemmas have also been addressed earlier:
– Non-refundable VAT and
– Foreign currency leases