FASB: Does the FASB’s New ASU Differ from IFRS?
[From the February 25, 2016 “FASB In Focus” (PDF)]
The leases project began as a joint project with the IASB. The IASB issued IFRS 16, Leases, in January 2016. The FASB and the IASB have reached the same conclusions in many areas of lease accounting, including requiring leases to be reported on the balance sheet, how to define a lease, and how lease liabilities are initially measured.
The main differences between this Accounting Standards Update (ASU) and IFRS 16 relate to certain aspects of the lessee accounting model. In contrast to the lessee accounting model in the ASU, which distinguishes between finance leases and operating leases in the financial statements, the lessee accounting model in IFRS 16 requires leases to be accounted for consistent with the approach for finance leases in the ASU.
Consequently, leases classified as operating leases under the guidance in the ASU will be accounted for differently under GAAP than under IFRS and will have a different effect on the statement of comprehensive income and the statement of cash flows.
IASB: What about convergence with US GAAP (FASB)?
[From the March 2016 “IASB Investor Update” (PDF)]
The (IASB) Board and the FASB have reached the same conclusions in many areas of lease accounting. However, they reached different conclusions on lessee expense recognition for some leases. The key takeaway for investors will be that the reporting of expenses and cash flows will be different between IFRS Standards and US GAAP.