Examlex
Especially in terms of retail properties, which of the following attributes is considered the most likely to result in drastic value differences between otherwise similar properties?
Implicit Rate
The interest rate inherently included in the lease payments, reflecting the lessor's cost of financing.
Incremental Borrowing Rate
The interest rate a company would have to pay if it borrows funds, used as a benchmark in lease accounting to determine the present value of lease payments.
Net Income
The total earnings or profit of a company after all expenses and taxes have been deducted from revenue.
GAAP
Generally Accepted Accounting Principles, the standard framework of guidelines for financial accounting used in any given jurisdiction, primarily in the United States.
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