How do I import Discount Rates?

Instructions on how to use the Import templates in Occupier.

What is a discount rate?
For a lessee, the discount rate for a lease is the rate implicit in the lease unless that rate cannot be readily determined (which is often the case).
In that case, the lessee can utilize two methods to determine an appropriate discount rate:

1. An organization can use its incremental borrowing rate (IBR). The IBR should approximate the financing rate that an organization would pay if they would have purchased the leased asset outright using uncollateralized financing from a lending institution.

2. Another method to determining the discount rate is to utilize the United States' Risk-free Rate (RFR) as your discount rate. This method is only available for private organizations and is an expedient (or shortcut). The RFR is publicly available data and can be found on the US Government Treasury website.

Instructions for importing Discount Rates

To find the import tool and select the right import template, refer to the document titled "How Do I Import Data into Accounting?"

This document will provide an overview of the import template guidelines for a successful import. 

Using the import template, please populate both the name and rate columns.

Name column- In this column, please give each discount rate that you add a name. Each name added must be unique in order for the upload to be successful. An example of a name would be "7 Year risk-free rate 01/01/2022." We suggest using a name that can be easily identifiable like a lease name or a time period.

Rate column- In this column, please assign a discount rate to each name that you have added. Similar to the name column, each rate must be unique in order for the upload to be successful. Please also ensure that the rates are entered as a percentage (0.05 for 5%).