CFA Practice Question

There are 520 practice questions for this study session.

CFA Practice Question

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?
Correct Answer: True

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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