Recent updates to lease accounting standards have enhanced comparability between financial statements and boosted transparency in financial reporting. The Financial Accounting Standards Board (FASB) issued ASC 842, Leases, while the International Accounting Standards Board (IASB) issued IFRS 16, Leases. Though the two standards broadly align on lease recognition, preventing companies from keeping leases off the balance sheet, some key differences remain.
This whitepaper highlights the major differences between the two standards for both lessors and lessees.