Comparison Gaap Vs Ifrs. Under ifrs lessors classify the leases as either operating or finance. Us gaap classifies the leases as operating direct financing lease and sales type lease the latter two are similar as finance lease in ifrs.
Furthermore ifrs differentiates between manufacturer or dealer lessors and other lessors. For ifrs standards implementation efforts are complete except for insurance. Under both ifrs standards and us gaap with major new standards on revenue leases financial instruments and insurance.
Gaap is considered a more rules based system of accounting while ifrs is more principles based.
This disconnect manifests itself in specific details and interpretations. For ifrs standards implementation efforts are complete except for insurance. For us gaap however only the revenue standard is fully effective in annual periods. Us gaap classifies the leases as operating direct financing lease and sales type lease the latter two are similar as finance lease in ifrs.
