IFRS classifies more leases as finance leases that are reported on the balance sheet than those capitalized under U.S. GAAP.

Name: IFRS classifies more leases as finance leases that are reported on the balance sheet than those capitalized under U.S. GAAP.
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IFRS is principles based which classifies more leases as capital leases, called finance leases under IFRS. Both U.S. GAAP and IFRS require that leases be capitalized when the leased asset's risks and rewards are transferred to the lessee.

IFRS Classifies More Leases as Finance Leases That Are Reported