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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › IFRS15-financing comment
sir in IFRS 15 when there is financing component involved, then we take PV of future consideration receivable discounted t customer’s borrowing rate.
So here my doubt is that why do we take customer’s borrowing rate? Shouldn’t it be seller’s borrowing borrowing rate? Theoretically, if the customer is being given significant time to pay back, then that means supplier is borrowing meanwhile(though bank ODetc.)
If you google IFRS 15 discount rate you will find a discussion in ifrscommunity website- for some reason I can’t paste this into this post.
But in the exam I think you will get 1 rate – so use that rate – key point is that you know that it’s got to be discounted.