Under ASPE, Assuming All Information Is Available, Which Rate Is

question 26

Multiple Choice

Under ASPE, assuming all information is available, which rate is used by the lessee in the lease present value calculations?

• A)Implicit borrowing rate.
• B)Lessee's incremental borrowing rate.
• C)Lower of the incremental and implicit rate.
• D)Either the incremental or implicit rate.

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Definitions:

Identified Goods

Goods that are designated and agreed upon at the time a contract of sale is made.

Existing

Currently in place or in existence; something that is present or alive at the current moment.

Parties Agree

A mutual understanding or concurrence between two or more parties regarding the terms of a contract or agreement.

Risk Of Loss

The liability for damage, loss, or destruction of goods assumed by a party in a contract.