Lease Valuation AASB 16

Incremental borrowing rates for AASB 16 lease valuation – Instructions to Agencies

Actual rates for use in annual accounts

The database below provides incremental borrowing rates for use by WA public sector agencies only as discount rates for determining the present value of lease payment obligations for which the implicit interest rate is unknown, in accordance with the requirements of AASB 16.

For leases commencing after inception, apply the rate for the month in which the lease commenced for the contracted term rounded to the nearest half year interval.  This database is updated monthly, at the beginning of the month, by WATC.

For leases transitioning to AASB 16 on 1 Jan 2019 (for Calendar Year reporting) or 1 July 2019 (for Financial Year reporting), apply the rate listed for Jan 19 / Jul 19 for the remaining term of the lease rounded to the nearest half year.

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Queries

All queries on application of AASB 16 should be directed to the Department of Treasury at Lease.StandardEnquiries@treasury.wa.gov.au. Issues with the above databases or the instructions for use can be made to WATC through csoperations@watc.wa.gov.au.