Determining what discount rate (or incremental borrowing rate) to use when adopting the new IFRS 16 standard is one of the most important judgments that organisational management will need to make. Ascertaining what discount rate to use is complex and it should be noted that this decision will have the largest qualitative impact on
Companies may consider maintaining the status quo, such as using typical spreadsheet accounting. Unfortunately, this solution is likely to be a painful one if your organisation has a large volume of leases (jn excess of 100) and lease complexity exists. Accounting firms do provide bolt-on or standalone solutions that can align internal systems.