Creating and Configuring Interest Rates
Last updated on 2024-12-16
Overview
Interest rates are used to calculate the current value of lease payments. They are key to determining lease liability and the right-of-use asset for the balance sheet.
To provide a basis for accounting leases, interest rates can be managed in the workspace of the same name. New lease rates can either be created manually or added by importing CSV files.
To allow calculation of country-specific interest rates and rates for different asset classes, each interest rate is always created for a specific combination of asset class, country or region and currency. In addition to this, the interest for each interest rate is split into maturity brackets.
To ensure that an interest rate can be used for a specific asset class, start by creating the asset class in the Asset Classes workspace.
This article contains the following sections:
The ‘Interest Rates’ Workspace
The Interest rates workspace displays all the Interest rates that have already been created:
The 'Interest rates' workspace
Creating an Interest Rate
Click Add a new interest rate to create a new interest rate.
The New interest rate dialog is displayed:
The 'New interest rate' dialog
Configuring Interest Rates
When configuring an interest rate, the following options are available:
Fields marked with a * are mandatory fields.
Option
Description
Asset class
Asset class to which the interest rate applies
Only those asset classes that have already been created in the Asset classes workspace will be available to choose from.
Currency
Currency to which the interest rate applies
Country or region
Country or region to which the interest rate applies
Valid from
Date from which the interest rate will apply
Yearly interest
Assignment of interest rates to maturity brackets. To do this, enter the applicable interest rate for each lease term.
The lease terms range from Up to one year to Undefined year (terms > 20 years).
Importing Interest Rates
As an alternative to manual creation, interest rates can also be imported in the form of CSV files:
Area for importing interest rates
- Click Browse and upload the required CSV file.
- Use the Drag & Drop method to add the required CSV file.
Once this is done, click Start import.
CSV Import Templates
To make automatic imports easier for you, we have provided a template for the CSV file. The structure of this template matches that required for the import.
The CSV file includes instructions on how to add the data.
Use the following link to download the template:
- Template for Interest Rate Imports