Effects of IAS 17 and IFRS 16 on Financial Statements of Ascendas REIT

ADVANCE FINANCIAL
ACCOUNTING

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
CHANGES TO ACCOUNTING REQUIREMENTS.....................................................................1
EFFECTS ON FINANCIAL STATEMENTS................................................................................3
EFFECTS ON SELECTED LISTED COMPANY.........................................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................7

INTRODUCTION
Accounting considers one of the key aspect in the company for making various kinds of
treatments of financial transactions which are comes into consideration within workplace. In the
accounting there are mainly two branches come under which are such as management and
financial and used by firm for taking internal and external decisions respectively. In the financial
accounting there are different kinds of financial statements are prepared and supports to firm for
analysing the business performance in terms of financials in the industry (Hahn, Fairchild and
Dowis, 2013). In the present project, Ascendas Real Estate Investment Trust (REIT) company is
selected which operates in the real estate industry and listed in the Singapore's largest firm which
is Space And Industrial Real Estate Investment Trust. The chosen firm having diversified
portfolio in three countries with different number of properties. The three countries with
properties are such as 100 properties in Singapore, 30 in the Australia as well as approximate 3
properties in the country China. It provides its properties to purchase and sale to huge number of
the customers which lead to increase revenue of Ascendas REIT. At the current assignment there
are about the leasing accounting treatment is to be analysed by using different two standards like
as IAS and IRFS. Here IAS 17 as well as IFRS 16 both are considered by chosen entity to make
treatment along with evaluating about the leasing at the workplace of it. Apart from this,
comparison between IAS 17 and IFRS 16 is to be given along with how leasing affects to the
financial statements of Ascendas REIT. At the end of report, effects on the potential and existing
shareholders of selected firm is to be explained.
CHANGES TO ACCOUNTING REQUIREMENTS
To make accounting treatments of different financial transactions there are various
accounting standards and reporting systems, theories etc. are framed by the authority body and
on the basis of these all transactions are recorded in financial statements in appropriate manner.
At the current case study there are about the leasing aspect is to be considered and then analysed
that how leasing treated in the books of account of company like as Ascendas Real Estate
Investment Trust. The treatments of leasing is mostly and highly require in the case of such
entity because it provides property on the leas to customers also along with selling to them
(Weil, Schipper and Francis, 2013). There are International Accounting Standard (IAS) 17 and
International Financial Reporting Standard (IFRS) 16 both are used by the Ascendas REIT to
make accounting treatments of leasing in profit and loss account, balance sheet, cash flow etc.
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