Question
How does IFRS 16 differ from US GAAP ASC 842 for lessee operating leases?
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Answer
IFRS treats all lessee leases like finance leases; US GAAP keeps separate operating-lease expense presentation.
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Question
Why is total expense typically front-loaded under a finance lease?
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Answer
Interest expense is higher early when the lease liability is largest.
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Question
How does a finance lease affect the lessee's income statement differently from a US GAAP operating lease?
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Answer
Finance lease shows depreciation plus interest; operating lease shows one straight-line lease expense.
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Question
At initial recognition, how are the lessee's right-of-use asset and lease liability measured in a finance lease?
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Answer
At the present value of future lease payments.
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