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1.may I knw what is the difference between interes rate implicit in the lease vs incremental borrowing rate?
If apply incremental borrowing rate, all the calculation of cfs remains unchanged right?
2. May I knw if we are lessor and it is finance lease, why we need to include pv of residual value in the cost of sales?
3. Do we need to include all pv of guarantee and unguarantee residual value in calculating the lease receivable on initial recog?
1. Unclear on your question. In a leasing question you will be given interest rate implicit in lease.
2. Unclear on your question. In a finance lease lessor shows lease receivable and finance income.
3. Yes it would.