Lease accounting as per IND As vs Local GAAP

Question

Accepted Answer

Lease accounting under IND AS and Local GAAP differ in treatment of operating leases and finance leases.

Under IND AS, all leases are recognized on the balance sheet as assets and liabilities, while under Local GAAP only finance leases are recognized.
IND AS requires lessees to recognize a right-of-use asset and lease liability for all leases, while Local GAAP only recognizes the lease payments as expenses.
IND AS requires lessees to separate lease and non-lease components in a contract, while Local GAAP does not have such requirement.
Under IND AS, lease expenses are recognized as depreciation and interest expense, while under Local GAAP lease expenses are recognized on a straight-line basis.
IND AS requires additional disclosures related to leases, such as maturity analysis of lease liabilities and reconciliation of lease liabilities.
Local GAAP may have specific industry guidelines that differ from IND AS in lease accounting treatment.

Top IQVIA Associate Manager interview questions & answers