Property Manager - EBS (MOSC)

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What is the expected process for handling a change in the cost of funds rate?

edited Aug 1, 2019 1:38PM in Property Manager - EBS (MOSC) 5 commentsAnswered

Hi,

When managing Equipment Leases, property leases in particular will be booked using the current cost of funds rate for the business.

This rate is subject to review on a periodic basis of at least annually as per IFRS16.

If the businesses cost of funds rate has changed then the lease ROU/Liability needs to be revalued applying the new rate to the remaining rent cash flows.

I can see that in the discount rate index setup screen I can set a new rate using an effective date - for example I update the rate from 5% to 4.75% on July 1st. But how do I get that applied to the lease?

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