The 'Incremental Borrowing Rate' is used in lease accounting when: MCQ with Answer and Explanation

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The 'Incremental Borrowing Rate' is used in lease accounting when:

A. The lessor does not disclose rate

B. The lessee cannot determine the interest rate implicit in the lease

C. Never

D. For all leases

Answer: Option B

Solution (By JKSSB Mock Tests)

If implicit rate is not readily determinable, lessee uses its incremental borrowing rate.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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The 'Fair Value Hierarchy' under Ind AS 113 categorises inputs into:

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Correct Answer: Option B

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Correct Answer: Option B

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This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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