They are very close together but there are some important differences.  You will find that the big firms of accountants have mostly issued a document doing comparisons and pointing out any significant differences.  The new FASB standard has helped to harmonise practices but do not think that this leads to greater convergence.  My own view is that there will never be complete convergence with IASB and FASB standards

The issue of "Lease contracts" has been built according to the accounting principle of "economic substance over legal form" and it will not be modified later. Only some harmonization and special cases will be reviewed back by the FASB and other organisms of the IFRS standards. 

Yes it does on a number of fronts. The new IFRS 15 proposes a different way of accounting for operating leases. It suggest recognition of a 'right-to-use' asset in the books of the lessee among other new considerations.

i didn't get your point David. IFRS 15 is on contracts with customers and lease is covered by IAS 17. there are only some cases, such as sale and leaseback, that are mentioned in IFRS 15 only for exclusion. Also, the treatment of operating leases you mentioned here is under IAS 17 (Substance over Form= the right to use the asset)

Sorry Saed Sulub, the new standard on Leases is IFRS 16, not IFRS 15, my apologies for that. The new standard replaces IAS 17 and will be effective for annual periods beginning on or after 1 January 2019. However, if the entity has already adopted IFRS 15: Revenue from contracts with customers, it may need to implement the new IFRS 16 on Leases.

Major thrusts in the new standard:

Thank you Dr David. 

i have just read IFRS 16 and it is mentioned that it is a part of the convergence between IASB and FASB. 

thanks to Dr Hussey and Dr Mongey for their beneficial answers 

IAS 17 has been repealed by IFRS 16. There is now no distinction between Financial/Capital Lease and Operating Lease. Consequently, Leases are no longer Off-balance sheet financing instruments. There will be significant impact on reporting entities once it is operation - which is likely to be 01.01.2019 although earlier adoption is encouraged.

Thank you Brain. Just i want to note, that according to IFRS 16, the earlier adoption is only allowed if the entity has been applying IFRS  15

Hi Saed

Remember that the IASB and FASB spent several years on leasing to get to the position they are now in - still not full harmonization.  Lobbying in the US is very strong so it is difficult to predict what will happen but on a general basis I cannot see any strong moves to greater harmonization.  For greater convergence FASB would have to give up the very favored role it has as an (almost) equal partner.  It would have only the same influence as all the other countries that have adopted IFRSs

For a fuller explanation of my arguements see the final chapter of my book (with Ong)

Pick a Number Internationalizing U.S. Accounting (2014) Business Expert Press.

Thank you Dr Roger

i think that at least practises could be harmonized. And each board can maintain its independence. I will try to read that chapter.

Yes the new standards on leases issued by the FASB and the IASB will cerainly contribute to harmonization. However there are stil some  differences beteween both standards. Under IFRS 16, there is no distinction between operationg leases and finance leases. Under the FASB standard the distinction still exists and it impacts the way of recognizing the expense in the income statement.: in the case of operating leases, a constant expense is recognized over the term of the lease, while for finance lease, the expense is decreasing (since interest expenses is decreasing)

Thank you Anne 

it is a good point. for your note, IFRS 16 Requires the leases to be classified either finance of operating in the books of lesser. the change is only for the lease accounting in the books of lessee

I think lease is a little more complicated than the previous surface treatment of IAS. That's why IFRS is modifying a number of previous IAS standards that are related to different accounting topics. Meanwhile, FASB has been continuously doing such modifications and updates in order to cope successfully with the developing accounting issues. 

Thanks Yuri for the informative paper on the new IFRS 16. Needless to say that FASB & IASB had to agree (I see political motives in the development of the new joint standards - IFRS 15 & IFRS 16), even though, as always, FASB brings out its uniqueness by adding a few more requirements regarding the new IFRS 16. As of now, there is a clear difference in the old IAS 17 and the new IFRS 16 on Leases. Attached is a brief I made to our local accounting professional body. You can also watch and listen to a brief from IASB's chairman Hans Hoogervorst from: https://www.youtube.com/watch?v=gBQ6Z5j9Lko.

https://www.youtube.com/watch?v=gBQ6Z5j9Lko