Leases. Principles for Financial Reporting, ASB.

Leases. Principles for Financial Reporting, ASB. Essay example
Masters
Essay
Finance & Accounting
Pages 5 (1255 words)
Download 0
Leases. Principles for Financial Reporting, ASB.
Off-balance sheet arrangement have long been the main concern of all accounting regulators and the economic consequences related to these items have prompted these regulators around the globe…

Introduction

Operating leases are known to be one of the off-balance sheet obligations; therefore, the placement of lease accounting continues to be one of the priorities for Financial Accounting Standard Board (FASB) and the International Accounting standards Board (IASB). During March 2009, these boards issued paper referred to as Leases: “preliminary view” which clearly outlined the proposal for new global lease accounting standards. The proposed standards would need the replacement of all operating leases with the capital leasing thus, triggering a shift of billions of dollars to the balance sheet across North America which was estimated that 70% of the total lease value would be capitalized if it involves commercial real estate. Then the end result of these change of the magnitude will be vast shift rippling through all financial reporting, the processes and merits across all us and global industries. Introduction: In the current UK accounting standard, it is important to understand that for any accounting purpose leases are generally classified as being either financial or operating standards: First, the word lease simply means an agreement between two parties involving a hiring of asset. The lesser is a legal owner who lets out the asset to the lessee and then at the end of the lease, the asset is returned to the lesser; ...
Download paper
Not exactly what you need?

Related papers

Hire purchase contracts and Lease in business and how they work
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…
Financial reporting
Financial statements also provide an insight into whether the managers actually are carrying out their duty of stewardship or not. Managers however may not always act in best interests of shareholders as theory suggests that managers may take actions which may not result into increase in shareholder wealth. Such actions of the managers may therefore suggest that managers may not be fulfilling…
The International Convergence Project
Globalization has undoubtedly contributed to the economic growth in developed as well a developing countries through the principle of comparative advantage and increased specialization. With the benefits of globalization, the policy makers have also recognized the need for uniform disclosures by firms engaged in multinational businesses. As accounting is a universal language for business, it…
Financial Reporting
Also, there is the problem that no one individual or corporation has full ownership of the earth, so it would be very difficult to account for. Even if some accountants did factor use of the earth into the accounts, there would likely be many more that would not do this. Accountants do have the expertise required because they understand how assets depreciate and also how to balance the economic…
Financial Reporting
Due to this increase in performance of the financial statements of the company, the earnings per share increased as well as the dividend payout ratios went up with a coverage of 2.8 times for the full year, which is the shareholder’s interest in the organization. As compared with the market ratios from IHG company, Next company shown a growth in all its financial aspects. The accounts have been…
FINANCIAL REPORTING
The paper presents the financial evaluation of the company and for this particular purpose, the most effective tool of ratio analysis has been utilized. The financial ratios are usually divided into various sub categories such as profitability, gearing and liquidity, each put emphasis on a different area of the financial outlook of the organization. These analyses form an integral part of the…
Financial Reporting
The assets listed in Coca-Cola Company’s balance sheet are classified into two main categories, current and other assets. Current assets are divided into two sections, with the first one being cash and cash equivalents and short term investments (The Coca-Cola Company, 2013). All the other assets that do not make up part of current assets are the long-term assets that are listed individually. In…