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What are the major differences between ASC 842 & IFRS 16?

What are the major differences between ASC 842 & IFRS 16?

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The major differences between ASC 842 & IFRS 16 are s follows :

IFRS 16 ASC 842
1. Effective date of IFRS 16 is for annual period beginning on or after January 1, 2019 for all entities. 1. Effective date of ASC 842 is December 15, 2018 for Public entities and December 15, 2019 for others.   
2. In IFRS 16, full retrospective approach or modified retrospective approaches are available. 2. ASC 842 allows only modified retrospective approach for all leases existing at or entered into.
3. IFRS 16 allows recognition exemption to low value assets. 3. No such exemption available in ASC 842.
4. IFRS 16 applies only a single on balance sheet lease accounting model. 4. ASC 842 applies dual classification model as operating leases or finance leases.
5. IFRS 16 asks lessees to remeasure lease liabilities when changes in variable lease payments are due to index or rates. 5. ASC 842 does not demand any reassessment due to adjustment to an index or rate.

ekkarill92 answered 1 year ago
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