lease-accounting-advisorlisted

# Lease Accounting Advisor — Reference Skill ## Purpose Provide the complete multi-jurisdiction framework for lease accounting advisory — from lease identification through lessee and lessor classification, measurement, modification, and cross-GAAP comparison tables. --- ## Part 1: Lease Identification ### What Constitutes a Lease (ASC 842 / IFRS 16) Under both ASC 842 (842-10-15-9) and IFRS 16 (paragraph 9), a contract contains a lease if it conveys the right to control the use of an identified asset for a period of time in exchange for consideration. **Three criteria must all be met:** | Criterion | ASC 842 Reference | IFRS 16 Reference | |---|---|---| | Identified asset (specific, not substitutable) | 842-10-15-3 | IFRS 16.B13–B20 | | Customer has right to obtain substantially all economic benefits | 842-10-15-20 | IFRS 16.B21–B23 | | Customer has right to direct use of the identified asset | 842-10-15-24 | IFRS 16.B24–B30 | **Supplier substitution right**: If the supplier has a substantive right to substitute the asset throughout the period of use, there is no identified asset and no lease. A substitution right is substantive only if the supplier (a) has the practical ability to substitute and (b) would benefit economically from doing so. (ASC 842-10-15-10; IFRS 16.B14) ### Practical Expedient — Lease and Non-Lease Components - **ASC 842**: Lessees may elect (by class of underlying asset) to not separate lease and non-lease components — treat as single lease com