A quick comparison. IFRS vs. US GAAP IAS 17 vs. FAS 13 as amended many times. IFRS uses 5 “indicators” that are considered as a whole. Indications that a contract is a FINANCE lease Title transfer Bargain purchase option Term of lease covers a majority of leased asset’s economic life
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IFRS vs. US GAAP
IAS 17 vs. FAS 13 as amended many times
Note that IFRS has no “bright line” rules
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5. Leased assets are of a specialized nature and are only usable by the lessee unless substantial costs are incurred to modify (nothing comparable in US GAAP)