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Incremental borrowing rate of interest (lessee’s)
The rate of interest the lessee would have to pay on a similar lease or, if that is not determinable, the rate that, at the inception of the lease, the lessee would incur to borrow over a similar term, and with a similar security, the funds necessary to purchase the asset.
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- Part of Speech: noun
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- Industry/Domain: Financial services
- Category: Accountancy
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