top of page
Search

FRS116 borrowing rate

  • Writer: Thomas Tsang
    Thomas Tsang
  • Jun 23, 2020
  • 1 min read

The incremental borrowing rate is defined in FRS116. It is not the borrowing rate of the company. So the challenge is how to get the incremental birr rate for a leased asset.


For example, a leased property in Singapore. We can consider to use 3 months SIBOR as starting point as property loan in Singapore is based on SIBOR+. The challenge is how much to adjust upward to determine the incremental borrowing rate of the property to a company in concern.

 
 
 

Recent Posts

See All
Enterprise value

In business valuation, enterprise value is the value of the business. It includes any intangible assets not booked such as goodwill,...

 
 
 
Walk through in audit

To perform walk through in audit with the objective to ascertain the audit assertions. We need to understand the control or process in...

 
 
 

Comments

bottom of page