Negative discount rate and IFRS16
One of the anomalies of the new lease accounting standard (IFRS16) of the International Accounting Standards Board (IASB) is the possibility to apply a negative discount rate for calculating the starting (initial) value of a lease.
In the attached article ‘Negative discount rate and IFRS16‘, you will find best practices to this moral dilemma.
In the series of Lease Implementation Dilemmas, the below dilemmas have also been addressed earlier in relation to IFRS16:
– Non-refundable VAT and
– Foreign currency leases
– Discount rate