Oracle Property Manager uses multiple discount rates for IFRS16 calculations
I have a question/issue. Please let me know the way around.
Lets say we have a discount rate 10% with effective date 01-Jan-20 and changed to 12% with effective date 01-Jan-23. If we create a lease on 01-Jan-24 that has commencement date 01-Jan-20 and termination date 31-Dec-29. For discounting, system takes two rates, 10% for 01-Jan-20 to 31-Dec-22, and 12% for 01-Jan-23 till end.
Our auditors say that, according to accounting standards, there should be same rate on whole lease period. Please let me know if Oracle Property Manager is not according to accounting standards. Also, please let me know how can we get a single rate for whole life of back-dated leases.