Report on Accounting For Leases

Running head: ACCOUNTING FOR LEASES
ACCOUNTING FOR LEASES
Name of the Student
Name of the University
Author Note

ACCOUNTING FOR LEASES1
Executive summary
The aim of this report is to analyse the impact of the accounting for leases on the finacuila
statements of the organisatuons. The report contains a review of the literature of three articles
from which it can be possible to evaluate the effects of the lease accounting process and how
the organisations has implemented the AASB 16 rules and what benefits such rules can bring
in manging the lease agreements.

ACCOUNTING FOR LEASES2
Table of Contents
Introduction................................................................................................................................3
Discussion..................................................................................................................................3
Literature review....................................................................................................................3
Conclusion................................................................................................................................10
References................................................................................................................................11

ACCOUNTING FOR LEASES3
Introduction
The objective of this study is to analyse the effect of the proposed rule of lease and
the recent changes that occur in the process of accounting of leases. The international
accounting standards board and the financial accounting standard board has set some
proposals on the on the changes in lease accounting that may be implemented in the future.
As per the proposed changes all the rights and liabilities that may arise from a lease
agreement will be considered as assets and liabilities on lessees in the balance sheet of the
company. In most of the cases it has been observed that leases in organisations are accounted
for as operating lease. As per the new rules for accounting of leases every lease should not be
considered as operating lease and it is also essential to consider that in some cases it is also
required to account lease as finance lease also.
The analyse the awareness of the proposed changes in the accounting process of lease
agreements several articles have been selected from which it will be possible to make an idea
about the impact of such changes in the financial statement of the company. From this
literature review it will be possible to estimate how the fiancé executives of the organisations
adapt with the new changes in the accounting of leases and how such changes can bring more
transparency in the financial statements of the organisation.
Discussion
Literature review
Implications of the new accounting standard for lease AASB 16 with the inclusion of
operating leases in the balance sheet