Applying the correct IBRs could have a significant positive impact on key financial ratios. While many organisations merely see an IBR calculation as a compliance item, with careful management and application of an IBR strategy, organisations can position themselves to benefit from the rapidly changing economic environment and optimise their balance sheet and profitability metrics.
Deloitte and Quadrent have performed analysis on actual IBRs adopted by Australian entities over recent years. In this analysis, both public and private companies were selected for the purpose of providing market-based insights into emerging and ongoing trends in lease discount rates.