IAS 17 VS IFRS 16 Lease – Differences – PDF

IAS 17 VS IFRS 16 Lease – Differences – PDF

IAS 17 vs IFRS 16 Lease: A Summary:

IFRS 16 vs IAS 17 leases: IFRS 16 is effective since early 2019 with major changes. Following table precisely elaborates the difference between IAS 17 and IFRS 16.

Difference between IFRS 16 and IAS 17 Leases

DifferencesIAS 17IFRS 16
Finance Lease
(Major Changes)
Certain criteria to be met to recognize a lease as finance lease; such as substantially transfer of risks and rewards.IFRS 16 introduces a single lessee accounting model and requires a lessee to recognize assets (right-of-use) and liabilities for All leases with a term of more than 12 months (unless the underlying asset is of low value).
Operating Lease
(Major Changes)
Lease is recognize as operating lease if the recognition criteria for finance lease is not met.

For Lessee:

  • There‚Äôs not concept of operating lease, however lessee may choose to EXPENSE out item of low value and lease with a term of less than 12 months.

For Lessor:

  • Lease is recognize as operating lease if the recognition criteria for finance lease is not met.
Manufacturer Dealer LessorUnchanged.Unchanged.
Sale and Lease back
(Major Changes)
Lessor and lessee account for sale and lease back transactions as finance lease or operating lease and account for them as prescribed.For lessor and lessee, Accounting for sale and lease back depends on whether Transfer is sale or not a sale.

Difference between ifrs 16 and ias 17 pdf

The above summary is the most simplified version of IFRS 16 vs IAS 17 pdf. Moreover, Click here to Download IAS 17 IFRS 16 pdf format.

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