This is the second episode of five EY IFRS podcasts on the determination of discount rates by lessees, when applying the new leases standard of IFRS 16 Leases. This episode covers how a lessee determines the incremental borrowing rate for a lease under IFRS 16 in practice.

EY IFRS podcast series

EY IFRS podcast episode 2

This series of EY IFRS podcasts focus on the determination of discount rates by lessees, when applying IFRS 16 Leases that comes into effect on 1 January 2019. There are in total five short podcasts which provide insights on: (i) the use of the interest rate implicit in the lease and incremental borrowing rate, (ii) determining the incremental borrowing rate in practice, (iii) the specific considerations around the incremental borrowing rate for a subsidiary and the application of the portfolio approach, (iv) the currency used in the determination of the incremental borrowing rate, and (v) discount rates for transition purposes. The podcasts are presented by Victor Chan, a member in EY Global IFRS Services and EY Global Subject Matter Group on leases, and moderated by Luci Wright, a member of EY Global IFRS Services.

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EY IFRS podcast series