Contingent Rents under IFRS16 Vs ASC842.

Topics related to local GAAP, audit, laws and regulations affecting financial reporting, non-GAAP measures, investor relations, internal control over financial reporting, XBRL, pro-forma information and other similar topics.
Post Reply
Posts: 16
Joined: 28 May 2020, 18:21

Contingent Rents under IFRS16 Vs ASC842.

Post by »

One major difference between IFRS16 and ASC842 seems to be with respect to remeasurement of Liability when Index rents change. For example Rents were 100 every month but after a year, due Index movement 100 became 105.
IFRS16 mandates remeasurement of Liability using 105 for all future years but FASB is ok with only expensing off the delta 5 every year thereafter.

Though this is IFRS community, I had a question on FASB. Is this 5 expense a recommendation or compulsorily to do accounting treatment?
Secondly, is this requirement also applicable for 'Finance' leases in USGAAP which to my knowledge no way different from IFRS16. Hence this expense off to be used only for Operating Leases in USGAAP?
User avatar
Marek Muc
Site Admin
Posts: 2115
Joined: 15 Oct 2018, 17:21
Location: Warsaw, Poland

Re: Contingent Rents under IFRS16 Vs ASC842.

Post by Marek Muc »

Questions about other GAAP go to general discussion so I moved this topic here :)
Post Reply