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Basic Question 14 of 16
In computing the present value of the minimum lease payments, the lessee should use the lower of its incremental borrowing rate and the implicit rate used by the lessor if known to the lessee. True or False?
User Contributed Comments 2
| User | Comment |
|---|---|
| kalps | Lessess - PV of MLPs use the lower of incremental borrowing rate or tehe implicit rate used by the lessor |
| blumonster | this is to make the lease obligation as high as possible -in accordance with the conservative principle. |
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Learning Outcome Statements
explain the financial reporting of leases from the perspectives of lessors and lessees
CFA® 2024 Level I Curriculum, Volume 2, Module 8.