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Scope
(USA GAAP)Only leases involving property, plant, and equipment.
(IFRS) Scope broadly applies to assets (with certain exceptions).
Lease classification
(USA GAAP) The classification of a lease depends on whether the lease meets certain criteria.
(IFRS) The classification of a lease depends on the substance of the transaction. Specific indicators and examples are provided.
Lessor accounting — sales-type leases
(USA GAAP) Specific criteria are provided for sales-type leases.
(IFRS) No specific criteria are provided for sales-type leases.
Leases of land and buildings
(USA GAAP) Land and building elements are generally accounted for as a single unit unless land represents more than 25 percent of the total fair value of the leased property.
(IFRS) Land and building elements are assessed separately for classification as a finance or operating lease.
Present value of minimum lease payments
(USA GAAP) A lessee uses the rate implicit in the lease to discount minimum lease payments if this rate is known and lower than the incremental borrowing rate.
(IFRS) A lessee generally uses the rate implicit in the lease to discount minimum lease payments.
Leveraged leases
(USA GAAP)Special accounting is permitted for leveraged leases if specific criteria are met.
(IFRS) No special accounting provided for leveraged leases.
Recognition of a gain or loss on a sale-and-leaseback transaction
(USA GAAP) If the seller does not relinquish more than a minor part of the right to use the asset, a gain or loss is generally deferred and amortized over the lease term for an operating lease and over the useful life for a capital lease. If the seller relinquishes more than a minor part of the use of the asset, part or all of a gain may be recognized, depending on the amount relinquished.
(IFRS) If the leaseback is a finance lease, the gain or loss is recognized over the lease term.
If the leaseback is an operating lease, the recognition of a gain or loss differs depending on whether the transaction is established at, below, or above fair value.
Sale-and-leaseback transactions involving real estate
(USA GAAP)There are specific requirements for sale-and-leaseback transactions involving real estate.
(IFRS ) The accounting for sale-and-leaseback transactions involving real estate is no different from that for sale-and-leaseback transactions involving non-real-estate assets.
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