How can I handle leases that need to be reported under both FASB ASC 842 and IFRS 16?

If a lease needs to be reported under both FASB ASC 842 and IFR 16, we recommend you enter the same lease twice if you would encounter any of the following situations. 

We recommend adding a new Reporting Entity labeled with "IFRS" for easy tracking of leases to be reported under IFRS.

Initial Application Dates: Depending on the organization, different initial application dates (e.g., 1/1/19 for IFRS, 1/1/21 for FASB) could drive differences in calculations:

• Different discount rates
• Different existing balances under previous accounting guidance affecting initial ROU Asset value
• Different transition policy election FASB/IFRS could impact calculations. See Accounting Policy templates at Administration/Policies. 

Operating leases: A lease classified as operating under FASB ASC 842 would be a finance lease under IFRS 16 so these leases will need to be re-entered as Finance Leases. 

Footnote: Selecting the IFRS 16 footnote excludes operating leases from the export.

Minimum Exemptions: IFRS has a $5,000 exemption limit.

Discount Rate: For nonpublic companies, the FASB allows for the risk-free rate election for the discount rate, IFRS does not.

Lease Revisions: If a revised lease resulted in a change in classification under FASB from finance to operating lease, the revised lease would have to be entered as a finance lease to properly report under IFRS 16.

Index-Based Payments: Lease payments based on an index need to be recorded as a revision under IFRS and a variable expense under FASB, although this might be immaterial.