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International Accounting Standards (IAS)
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| U.S. GAAP | IFRS, IAS | Accounting Topics |
International Accounting Standard (IAS) 17
Leases
International Financial
Reporting Standards (IFRS) |
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International Accounting
Standards (IAS) |
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U.S. GAAP by Topic |
| International Accounting Standard (IAS) 17 |
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IAS 17 Leases IAS 17 first issued in September 1982 IAS 17 revised in December 2003 Recent amendment: by IFRS 7 issued in August 2005 |
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Classification of leases (1) Finance lease (2) Operating lease |
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Finance lease --> the risks and rewards of ownership are transferred to lessee |
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Operating lease --> all leases other than finance lease |
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Accounting for lessees (1) Finance lease --> fair value of leased property is --> recognized as assets and liabilities on the financial statements --> present value of minimum lease payments, if this amount is lower (2) Operating lease --> lease payments are --> recognized as an expense --> straight-line basis --> over the lease term |
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Accounting for lessors (1) Finance lease --> net investment in the lease is --> recognized as receivables (2) Operating lease --> lease income is --> recognized in income --> straight-line basis --> over the lease term |
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Net investment in the
lease --> gross investment in the lease --> discounted --> at the interest rate implicit in the lease |
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Gross investment in the
lease --> the aggregate of (1) minimum lease payments receivable (2) unguaranteed residual value |
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