Hire purchase contracts and Lease in business and how they work

Hire purchase contracts and Lease in business and how they work Essay example
Masters
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Finance & Accounting
Pages 6 (1506 words)
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Table of Contents 1) Executive summary . 2 2) Introduction .…………………………………………. 3 3) Main findings of the study …………………………………………… 3 4) Conclusions …………………………………………

Introduction

The following study discusses the various methods by which leases are presently differentiated and accounted for in accordance with SSAP 21, the reason and content of ASB statement of codes, the criticism of the approach adopted by the present accounting standard and at last the amendments to the current accounting standard which have been proposed in light of this criticism. Introduction: An Accounting Standard is a principle that explains the accounting structure, utilizing it as the conceptual foundation for its work. The major role of this Statement is to offer conceptual input into the ASB's job on the growth and review of accounting standards. The study consists of various procedures regarding the “SSAP 21” (SSAP 21 Accounting for Leases and Hire Purchase Contracts 1997) and its recent amendment. The aim of financial reports is to offer information on the subject of the reporting entity’s fiscal performance and monetary position which is helpful to a large range of users for evaluating the stewardship of the entity’s organization and forming economic decisions. “Financial statements need to reflect the effects of transactions and other events on the reporting entity’s financial performance and financial position. ...
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