Global professional services firm Alvarez & Marsal announced the launch of LeaseSCRE (pronounced: “lease score”), a web-based tool that uses machine learning to estimate an incremental borrowing rate (IBR) curve.

LeaseSCRE is designed to provide companies with a streamlined and efficient mechanism to estimate the discount rates necessary to meet new lease accounting requirements under the Financial Accounting Standards Board’s Accounting Standards Codification 842: Leases (ASC 842).

LeaseSCRE uses market-traded credit default swaps to derive an estimated rating-specific borrowing rate that is then adjusted with a collateral spread. The resulting rating-specific collateralized IBR curve enables companies to adjust for company or lease specific items and value all their leases.