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Abstract:
The expansion of the accounting standards, accounting for leases has created a constant debate since the authoritative difference in literature between U.S. GAAP and IFRS. Although, the Financial Accounting Standard Board (FASB) and the International Accounting Standard Board (IASB) have been working jointly to eliminate differences between the two sets of standards, they pave the way toward the convergence of the U.S. generally accepted accounting principles (GAAP) with the international financial reporting standards (IFRS). In addition, despite their joint effort, there have been inconsistencies and criticism of the lease accounting. The aim of this study is to conduct a comparative analysis of U.S. GAAP and IFRS in regards to accounting for leases. Besides, this qualitative study explored the literature that covers the accounting for leases. The study presents a comparative analysis of leasing standards under U.S. GAAP and IFRS. The focus of the study is the accounting for the lessee.
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