HKFRS/IFRS 16 – Lease – Impact on Valuation and Discounted Cash Flow

2021-01-27T08:11:00+00:00January 27th, 2021|Categories: Business Valuation, Financial Reporting IFRS HKFRS|Tags: , , |

Lessees no longer make a distinction between finance leases and operating leases. All material leases will be treated as finance leases. The lessees will now recognize interest cost and depreciation of the leased asset, rather than operating lease expenses.

Incremental Borrowing Rate HKFRS 16 (IBR)

2020-06-12T07:44:42+00:00June 20th, 2019|Categories: Financial Reporting IFRS HKFRS, News, Valtech Insights|Tags: , , |

Incremental borrowing rate is defined under HKFRS 9 as the rate of interest that a lessee would have to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic environment.

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