Complete ASC 842 and IFRS 16 fact patterns - measurement, journal entries and tie-outs, worked all the way through.

A UK facility rented in pounds by a euro-functional subsidiary reporting in dollars throws off two separate FX numbers: EUR 758,875.22 through profit or loss, and USD 1,517,084.07 that never touches earnings at all. Remeasurement and translation are different mechanics with different destinations, and one lease can be subject to both.

Nineteen months into a 36-month equipment lease, a customer contract award makes a renewal option reasonably certain. The reassessed term crosses from half the asset's economic life to 83.3% of it, and an operating lease becomes a finance lease mid-year.

An annual index review lifts the rent twice over a three-year lease. IFRS 16 remeasures the lease liability. ASC 842 does not. The cash is identical at $340,166.40 - and by 31 December 2026 the two liabilities are $3,503.11 apart.

A tenant hands back 30% of the floor at month 19. The liability remeasurement is identical under both accepted methods. The gain or loss is not - one books a $1,470.71 loss, the other a $5,329.24 gain, on the same lease, on the same day.