logo

Accounting for Leases: A Case Study

   

Added on  2020-02-19

6 Pages1070 Words50 Views
 | 
 | 
 | 
Running head: ACCOUNTING FOR MANAGERSAccounting for ManagersName of the StudentName of the UniversityAuthors NoteCourse ID
Accounting for Leases: A Case Study_1

1ACCOUNTING FOR MANAGERSTable of ContentsKey Accounting Considerations:...............................................................................................2Implementing the standards of Financial Accounting and Reporting:.......................................2Accounting and Reporting by Lessees:......................................................................................2Disclosure:..................................................................................................................................3Leases between the unrelated parties:........................................................................................3Accounting of lessee under the FASB:......................................................................................4Reference List:...........................................................................................................................5
Accounting for Leases: A Case Study_2

2ACCOUNTING FOR MANAGERSKey Accounting Considerations: This statement provides the standards of financial accounting and reporting forCompany A with special emphasis on the key accounting considerations relating to theacquirement of Land and Lease undertaken by the company (Hoskin, Fizzell and Cherry2014). For the purpose of this report lease can be defined as an contract that conveys the rightto make use of the property plant and equipment for the assured period of time. It compliesthe agreements even though not nominally recognized as the leases however meet the abovedefinition. Payments that are made on behalf of the lessee symbolizes enticement which mustbe measured in the form of reductions of leasing expense by the lessee and the reduction ofany form of leasing proceeds by the lessor greater than the expression of the lease.Implementing the standards of Financial Accounting and Reporting: Related parties in the lease transactions: Company A and BPI possess the ability to implement significant amount of influenceover reporting and the monetary policies of the associated parties (Hoyle, Schaefer andDoupnik 2015). For the purpose of this definition, company A must obtain in writing andsigned by the interested parties associated with the contract and must specially lay down theprinciple term of transactions. Accounting and Reporting by Lessees: Company might take the possession or it can acquire the control of the agreement propertyprior to the commencement of operations or by making the rental payments under the termsof the lease. During the period, the lessee has the right of using the leased possessions andperforms with the objective of lease asset. Following the completion of the construction,
Accounting for Leases: A Case Study_3

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Accounting Financial Analysis Report
|9
|2028
|253

Finance Lease: Definition, Conditions, and Accounting Treatment
|4
|865
|275

Accounting for Finance Leases by Lessees
|11
|2324
|398

Issues in Financial Reporting: AASB 16 on Accounting for Leases
|5
|743
|179

Finance lease Assignment PDF
|6
|1277
|215

Assignment on Corporate Accounting and Reporting pdf
|5
|1255
|19