(i) Lease definition: Under Ind AS 116, the definition of lease is similar to that in AS 19. But, in Ind AS 116, there is substantial change in the guidance of how to apply this definition. The changes primarily relate to the concept of ‘control’ used in identifying whether a contract contains a lease or not. (ii) Modifications: Ind AS 116 brings in comprehensive prescription on accounting of modifications in lease contracts. (iii) Scope: AS 19 excludes leases of land from its scope. Ind AS 116 has no such scope exclusion. (iv) Inception and commencement: Ind AS 116 makes a distinction between ‘inception of lease’ and ‘commencement of lease’ unlike AS 19. (v) Treatment of Initial direct cost: For lessor, the treatment of initial direct costs under Ind AS 116 differs from the treatment prescribed under AS 19. (a) Finance leaselessor accounting - Non-manufacturer/Non-dealer AS 19 Either recognised as expense immediately or allocated against the finance income over the lease ter