UDC: 336.781.5
https://doi.org/10.25198/2077-7175-2025-3-35
EDN: TNEFAG


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FEATURES OF DISCOUNTING LEASE PAYMENTS IN THE CONTEXT OF DETERMINING THE INTEREST RATE

V. S. Levin
Orenburg State University, Orenburg, Russia
e-mail: vslevin@mail.ru

Abstract. When discounting rental payments, the discount rate level plays a key role. If, in accordance with the terms of the lease agreement, the rate cannot be precisely determined, it is necessary to resort to similar borrowing rates with comparable conditions, or calculate it analytically.

The purpose of the study is to identify the features of discounting rental payments in the context of determining the discount rate. The subject of the study is the relationship in the form of operating and financial leases.

Research methodology: analysis of existing loans, market data, credit rating assessment, regression analysis, financial asset valuation model, multiplier method, cumulative construction.

The novelty and results of the study: revealed the similarity of rental relations with investment and credit transactions, the problems of determining the discount rate analytically. The author’s classification of discount rates is constructed, including implied (implicit) rates, incremental borrowing rates, and risk-free rates. The differentiation of rates is based on accounting for: differences in information sources, requirements in accounting standards, the possibilities for the parties to use the lease, the impact of the chosen rate on the amount of lease obligations and key issues.

The necessity of reflecting investment, credit and country risks in the discount rate is proved. The causal relationships between the factors influencing the premium for rental risk have been identified. A comparative analysis of discount rates in the BRICS countries has been carried out, including three determinants: risk-free interest rates, country premiums and rental risk premiums. The specifics of discounting lease payments are due to the need to find additional sources of information and compare data on observed discount rates with unobserved alternative rates: the key rate of the Bank of Russia, the weighted average rate, and rates on government and corporate bonds.

The theoretical significance of the study is to clarify terminology and systematize information on ways to determine the discount rate in cases where it cannot be explicitly determined.

The developed author’s classification of discount rates in rental relations is of practical importance, as well as the examples of determining discount rates in budget institutions and commercial organizations that are subject to investment, credit and country risks.

In the future, it will be necessary to test the hypothesis of whether it is possible to use methods and models used in the risk analysis of investment projects to estimate the discount rate for leases. It is also recommended to eliminate the gap in determining the discount rate in the context of sustainable development.

Key words: discounting, implied rate, incremental borrowing rate, risk-free rate, lease payments, synthetic ratings, default spread, rental risk premium, country risks.

Acknowledgements. The author expresses his sincere gratitude for the review and methodological support to the chief accountant of LLC «Mopletek» Shiryaev Evgeny Vladimirovich, St. Petersburg.

Cite as: Levin, V. S. (2025) [Features of discounting lease payments in the context of determining the interest rate]. Intellekt. Innovacii. Investicii [Intellect. Innovations. Investments]. Vol. 3, pp. 35–51. – https://doi.org/10.25198/2077-7175-2025-3-35.


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