Lease Accounting - Discount rate index does not change during the periods of the lease.
Summary:
Lease Accounting - Discount rate index does not change during the periods of the lease.
Content (please ensure you mask any confidential information):
Client has lease contracts where the discount rate index is different for each period for the amortization, configured discount rate index for each period. But after generating amortization schedule the discount rate is not applied for each period as per the configuration. The discount rate configured for the first period is applied to all the periods for two years, the expected result is the discount rate Index configured for each period should be applied in the amortization schedule. Why is that happening? Attached the lease details report and the discount rate that are configured.
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