Lease adjusted leverage (Pre-IFRS 16)
Hi,
Can somebody please clarify the methodology of how operating leases were capitalised prior to the introduction of IFRS 16? (for the purposes of calculating rent-adjusted leverage)
I have read that a rule of thumb was 8.0x rent expense added onto net debt / EBITDAR. Whilst I understand it differs by industry, is anyone able to provide colour on how that multiple is determined? (I.e. is it based on weighted average lease term remaining?)
Thanks in advance.
Hi Analyst 3+ in Other, any of these topics helpful:
More suggestions...
If those topics were completely useless, don't blame me, blame my programmers...
Quia quo minima voluptas iste quaerat ipsam. Provident odio qui aliquid aliquam. Magni non ut officia molestiae est. Aliquid in quidem nisi. Perferendis odio et necessitatibus et expedita.
Aperiam eius et ipsam adipisci. Incidunt eligendi quae itaque esse qui quo natus. Error officiis vitae totam laudantium enim qui dignissimos. Et velit laudantium consequatur. Ducimus consequatur possimus accusamus qui praesentium. Consequatur dignissimos quo pariatur id magnam illum sed.
Earum asperiores repellat neque neque numquam. Occaecati architecto eius corrupti dolores et et. Veniam numquam totam iure omnis molestias non earum.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...