What date do I consider when determining my Discount Rate?

When determining a discount rate, an organization should select/calculate the discount rate at the later of their transition date to ASC 842/IFRS 16 and/or the possession date/amendment date of the lease.

For example- Company A transitioned to ASC 842 on January 1, 2022. 

Lease X commenced on April 1, 2015 and lease Z commenced on May 1, 2022.

Company A will  utilize January 1, 2022 for lease X and  May 1, 2022 for lease Z.

In the event of a lease modification, an organization would utilize the rate effective as of the modification date.

For more information on selecting the appropriate discount rate, refer to the article here.