Determining the capitalization interest rate on the basis of the weighted average cost of capital (WACC) is a central requirement of IDW. This requires, among other things, the determination of the base interest rate for a (quasi-) risk-free capital market investment.

Against the backdrop of the ongoing low interest rate environment, the IDW Technical Committee for Business Valuation and Business Administration (FAUB) published a clarifying addition to the derivation of the standard net present value equivalent base interest rate in July 2016.