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Leases 3 AASB 117 Leases 3 AASB 117 and IFSR 16 5 Recommendations 7 Press Release 8 Business Report

   

Added on  2020-02-24

10 Pages2159 Words332 Views
Accounting Theory1
Leases 3 AASB 117 Leases 3 AASB 117 and IFSR 16 5 Recommendations 7 Press Release 8 Business Report_1
ContentsBusiness Report..........................................................................................................................3AASB 117 Leases...................................................................................................................3AASB 117 and IFSR 16.........................................................................................................5Recommendations..................................................................................................................7Press release...............................................................................................................................8Description of leased Assets...................................................................................................8Company`s changeover to the new accounting treatment which is requisite as per IFSR 16Leases.....................................................................................................................................9References................................................................................................................................102
Leases 3 AASB 117 Leases 3 AASB 117 and IFSR 16 5 Recommendations 7 Press Release 8 Business Report_2
Business ReportThis business report, comprehends a brief detail about the AASB 117 which is an accountingstandard made by the Australian accounting standard board. In addition to this, a comparisonbetween AASB 117 and the IFSR 16 in context to the accounting based treatment for leasesis also discussed, in order to clarify the both accounting standards[ CITATION Hen15 \l 1033 ].This report also embraces the impact of the changes because of the new accounting standardi.e. IFSR 16 on financial reporting. The business report is prepared by considering the,Genworth Mortgage Insurance Australia Limited, which is engaged in the business of loanmortgage insurance. Some recommendations are also being provided to the management of Genworth Ltd.regarding the practice of the new accounting standard for accounting treatment of leases: sothat, the business processes shall be continued without any legal interruption that could beoccurred due to the negligence of practicing accounting standard while preparing financialstatement of company.AASB 117 LeasesThe Australian Accounting Standard Board made an accounting standard on 15th July, 2004;i.e. AASB 117, in regards to the accounting treatment of leases. This accounting standardcomes under Corporation Act 2001`s section 334[ CITATION Cla12 \l 1033 ]. The main objectiveof the AASB 117 is to set some guidelines for the lessor as well as lessee in context to theapplicable policies of accounting and disclosure which shall be applied in context to theleases.A lease can be defined by considering the AASB 117, as an agreement which encloses theright to use an asset conveyed by a lessor, to a lessee for a fixed or specific time period inreturn for a compensation or series of payment[ CITATION Fre15 \l 1033 ].Lessor is the one, who owns or possess the asset. Asset`s legal title is retain by thelessor. Payment is used to be received by the lessor for conveying the right to use theasset to the lessee.On the other hand, lessee gets authorized to use the asset with a right, however,payment shall be made to the lessor by the lessee for such authorization. The AASB 117, standard is applied to all the leases apart from- licensing agreements foritems, such as, copy rights and patents, video recordings, motion pictures and play3
Leases 3 AASB 117 Leases 3 AASB 117 and IFSR 16 5 Recommendations 7 Press Release 8 Business Report_3

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