In-depth Exploration of Lease Accounting Liability and Discount Rates with Standard Updates

This chapter explores the intricacies of determining liability in lease accounting, emphasizing the significance of the discount rate chosen, such as incremental borrowing rate, federal fund rate, and the transition to using the risk-free rate. The discussion details the effects of interest rate fluctuations on liability and asset values, as well as the recent standards modifications regarding common control leases.