The following facts are for a non-cancellable lease agreement between Hebert Corporation and Russell Corporation, a lessee: Inception date July 1, 2020 Annual lease payment due at the beginning of each year, starting July 1, 2020 $20,066.26 Bargain purchase option price at end of lease term reasonably certain to be exercised by Russell $4,500.00 Lease term 5 years Economic life of leased equipment 10 years Lessor's cost $60,000.00 Fair value of asset at July 1, 2020 $88,000.00 Lessor's implicit rate 9% Lessee's incremental borrowing rate The collectibility of the lease payments is reasonably predictable, and there are no important uncertainties about costs that have not yet been incurred by the lessor. The lessee assumes responsibility for all executory costs. Both Russell and Hebert use IFRS 16. 9% The question by changing the facts so that the IBR is 8% - How does that change the accounting, if at all, for IFRS for lessee and lessor? -How does that change the accounting, if at all, for ASPE for lessee and lessor? - Support with calculations. The following facts are for a non-cancellable lease agreement between Hebert Corporation and Russell Corporation, a lessee: Inception date July 1, 2020 Annual lease payment due at the beginning of each year, starting July 1, 2020 $20,066.26 Bargain purchase option price at end of lease term reasonably certain to be exercised by Russell $4,500.00 Lease term 5 years Economic life of leased equipment 10 years Lessor's cost $60,000.00 Fair value of asset at July 1, 2020 $88,000.00 Lessor's implicit rate 9% Lessee's incremental borrowing rate The collectibility of the lease payments is reasonably predictable, and there are no important uncertainties about costs that have not yet been incurred by the lessor. The lessee assumes responsibility for all executory costs. Both Russell and Hebert use IFRS 16. 9% The question by changing the facts so that the IBR is 8% - How does that change the accounting, if at all, for IFRS for lessee and lessor? -How does that change the accounting, if at all, for ASPE for lessee and lessor? - Support with calculations