Types of Leases:
Since the treatment of lease depends on the type of lease, there is a need to know the types of leases as follows:
1. Finance Lease or Capital Lease which is described as the commercial arrangement between the lessor and the lessee. It is the finance company that holds the legal right of the land and building or asset during the whole period of the lease.
2. Operating Lease is not capitalized and is treated as rental expense where the lease contract allows the use of the asset but it is not considered as ownership.
Both US GAAP and IFRS are similar in their accounting for leases though there are specific differences such as the US GAAP ...
Types of lease and US GAAP and IFRS similarities and differences in the treatment of leases are discussed. The post has 2 references.
IFRS is considered to be principle based, while U.S. GAAP is rules based. List two IFRS regulations that are priniciples based.
List and explain two IFRS regulations that you consider to be principle based.View Full Posting Details