GAAP vs IFRS Lease classification

CFA Level I
#1

I’m having trouble remembering these, does anyone have any tips or tricks to remember these?

GAAP Lessee’s perspective

Capital lease if any hold

  • Risk of ownership transferred
  • PV of lease payments at inception greater than 90% of FV
  • Hold asset for more than 75% is economic life
  • Bargain purchase option

If none hold, operation

IFRS Lessee’s perspective

Financing lease if all risks and rewards transferred to lessee. If not Operating

I can get them down if I sit and think about it but just seeing if anyone has easy ways to remember them.

Thanks!