- This topic has 3 replies, 2 voices, and was last updated 10 years ago by
.
Viewing 4 posts - 1 through 4 (of 4 total)
- Posts
Hi mike
On page 88, This is just me double checking that my understanding is correct, I hope you don’t mind
Is the gross presentation of the figures less interest not yet accrued equal to the net presentation figures because the discount rate used to calculate the present values for the net figures is equal to the interest rate for the interest not yet accrued in the gross calculation (which is of course the interest rate implicit in the lease) ?
Thanks in advance
Hugh
Yes! The grossed up figures include finance lease interest at the implicit rate. The net presentation values discount the future instaments using the same rate of interest as the implicit rate
Ok?
Viewing 4 posts - 1 through 4 (of 4 total)
- You must be logged in to reply to this topic.