|Particulars||IFRS||US GAAP||Indian GAAP|
|Leases – lessee accounting||Finance leases are recorded as asset and obligation for future rentals. Depreciated over useful life of asset. Rental payments are apportioned to give constant interest rate on outstanding obligation.
Operating lease rentals are charged on straight-line basis.
|Similar to IFRS. Specific rules should be met to record operating or capital lease.||Similar to IFRS|
|Leases – lessee accounting: sale and leaseback transaction||For finance leases, profit arising on sale and finance leaseback is deferred and amortized. If an operating lease arises, profit recognition depends on whether the transaction is at fair value. Substance/ linkage of transactions is considered||Timing of profit and loss
recognition depends on whether seller relinquishes substantially all or a minor part of the use of the asset. Losses are immediately recognised. Specific strict criteria are considered if the transaction involves real estate
|Similar to IFRS|
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