Sl. No. | Topic | Ind AS 116 | AS 19 |
8 | Upward revision of unguaranteed residual value | Upward revision of unguaranteed residual value, during the term of the lease is permitted by the standard | AS 19 prohibits upward revision of unguaranteed residual value, during the term of the lease |
9 | Treatment of excess of sale proceeds over the carrying value of the asset in sale and leaseback transaction | The seller-lessee should measure the right-of-use asset arising from the leaseback based on the previous carrying amount. Any gain or loss relating to the rights transferred to the buyer-lessor should be recognised in the profit and loss account | In case of a sale and leaseback transaction (in case of finance lease), the excess of sale proceeds, over the carrying amount of the asset, to be deferred and amortised by the seller(lessee) over the tenure of lease, in proportion to depreciation of the leased asset. |
10 | Classification of lease liabilities | Lease liabilities are classified as current/non-current. It also makes reference to Ind AS 105 on “Non-current Assets Held for Sale and Discontinued Operations“ | These matters are not addressed in AS 19 |
11 | Expected inflationary costs | For operating lease, if escalation of lease rentals is attributable to the expected general inflation to compensate the lessor for expected inflationary costs, such costs shall not be straight lined | AS 19 does not provide for the same |
12 | Treatment of initial direct costs by lessor | Initial direct costs, incurred by the lessor in case of operating lease, should be included in the carrying amount of leased asset and amortised as an expense, over the lease period | Initial direct costs, incurred by the lessor in case of operating lease, should be either charged off, at the time of incurrence or should be amortised over the lease period |
13 | Disclosures | Disclosures are more as compare to AS 19 | Fewer disclosures as compared to Ind AS 116 |