Examlex
The terms "parallel conversion" and "direct conversion" are different terms for the same thing.
Incremental Borrowing Rate
The interest rate a lessee would have to pay to borrow on a collateralized basis over a similar term the funds necessary to lease an asset.
Lessor's Implicit Interest Rate
The interest rate in a lease agreement that, when applied to the minimum lease payments, causes the present value of those payments to equal the fair value of the leased asset.
Present Value Factor
A formula used to calculate the present value of a sum of money to be received in the future, taking into account the time value of money.
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