Assignment on Intermediate Managerial Accounting
Added on 2022-08-29
6 Pages1293 Words16 Views
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Running head: INTERMEDIATE ACCOUNTING
1
Intermedeiate Managerial Accounting
Name:
Institution:
Date:
1
Intermedeiate Managerial Accounting
Name:
Institution:
Date:
![Assignment on Intermediate Managerial Accounting_1](/_next/image/?url=https%3A%2F%2Fdesklib.com%2Fmedia%2Fimages%2Fis%2F434b8bff9c7e4a14889177e22fa92736.jpg&w=3840&q=10)
INTERMEDIATE ACCOUNTING 2
Accounting for lease
Accounting for leases” will need to be applied from the reporting for 2022. But there
are companies that are better off moving to a new order now. Let’s figure out what is
changing for tenants and lessors and how to simplify the transition period. Lease accounting
was developed on the basis of the International Standard for Financial Reporting, or IFRS 16
“Leases” .BIUC applies to commercial organizations that conclude contracts for the provision
/ receipt of property for temporary use for a fee. An exception is made for three objects of the
contract:subsoil plots for exploration, mining; results of intellectual activity, means of
individualization and their material carriers; objects of concession agreement. Public sector
organizations do not apply the standard: for them back in 2016 the “Rent” was developed
(Baker, 2019)..
What new concepts does the standard introduce?
The leased asset is granted for the period specified in the contract; the rental subject is
identified and under the terms of the contract the lessor cannot replace it before the end of the
rental period; the lessee has the right to use the leased item for profit; the lessee has the right
to determine how to use the accounting object in the framework of its technical
characteristics.If the tenant uses simplified accounting methods, then the initial amount can
be taken as the basis of the assessment, and the costs of future dismantling will be recognized
upon the fact - in the period when the dismantling happens. If the lease is long, lease
payments and interest rates can change, which means that you will have to adjust the amount
of assets and liabilities.
Accounting for preferred shares
Accounting for lease
Accounting for leases” will need to be applied from the reporting for 2022. But there
are companies that are better off moving to a new order now. Let’s figure out what is
changing for tenants and lessors and how to simplify the transition period. Lease accounting
was developed on the basis of the International Standard for Financial Reporting, or IFRS 16
“Leases” .BIUC applies to commercial organizations that conclude contracts for the provision
/ receipt of property for temporary use for a fee. An exception is made for three objects of the
contract:subsoil plots for exploration, mining; results of intellectual activity, means of
individualization and their material carriers; objects of concession agreement. Public sector
organizations do not apply the standard: for them back in 2016 the “Rent” was developed
(Baker, 2019)..
What new concepts does the standard introduce?
The leased asset is granted for the period specified in the contract; the rental subject is
identified and under the terms of the contract the lessor cannot replace it before the end of the
rental period; the lessee has the right to use the leased item for profit; the lessee has the right
to determine how to use the accounting object in the framework of its technical
characteristics.If the tenant uses simplified accounting methods, then the initial amount can
be taken as the basis of the assessment, and the costs of future dismantling will be recognized
upon the fact - in the period when the dismantling happens. If the lease is long, lease
payments and interest rates can change, which means that you will have to adjust the amount
of assets and liabilities.
Accounting for preferred shares
![Assignment on Intermediate Managerial Accounting_2](/_next/image/?url=https%3A%2F%2Fdesklib.com%2Fmedia%2Fimages%2Fyz%2Fbd896b73010949fba746b8c90536b62e.jpg&w=3840&q=10)
INTERMEDIATE ACCOUNTING 3
Preferred shares are a special kind of equity securities, which, unlike ordinary shares,
have special rights, but also have a number of specific restrictions. Preferred shares - a
common financial instrument in the world.
It allows the owner to receive a guaranteed income based on the dividend rates
offered by the issuer of securities. Firstly, almost always the owner of preferred shares is
guaranteed a certain income. Namely, fixed income is accrued on preferred shares, in contrast
to ordinary shares, the dividends of which depend on the profit of the joint-stock company.
However, dividends are not paid if the company incurred losses during the reporting period.
Secondly, cash for dividends is allocated to holders of such securities as a matter of
priority(Frey,2017).
Accounting for post-retirement benefits
In particular, income in the form of a lump-sum cash payment and gifts are not a
remuneration of the employee for the performance of labor and other duties. Such incomes
are exempted from taxation if their amount, in combination with other social incomes from
the organization for the year, has not exceeded the established limit.
The severance pay paid to an employee upon dismissal due to retirement is exempt
from income tax within nine average monthly salaries of an employee. The exemption
provided for social income can also be applied to the sum of the excess of the severance pay
over this limit (Doliya,& Singh, 2016). If the established limits for exemptions are exceeded,
the amount of the excess is included in the tax base for calculating the income tax of the
month in which the excess occurred. Further income tax is calculated in the generally
established manner .
Preferred shares are a special kind of equity securities, which, unlike ordinary shares,
have special rights, but also have a number of specific restrictions. Preferred shares - a
common financial instrument in the world.
It allows the owner to receive a guaranteed income based on the dividend rates
offered by the issuer of securities. Firstly, almost always the owner of preferred shares is
guaranteed a certain income. Namely, fixed income is accrued on preferred shares, in contrast
to ordinary shares, the dividends of which depend on the profit of the joint-stock company.
However, dividends are not paid if the company incurred losses during the reporting period.
Secondly, cash for dividends is allocated to holders of such securities as a matter of
priority(Frey,2017).
Accounting for post-retirement benefits
In particular, income in the form of a lump-sum cash payment and gifts are not a
remuneration of the employee for the performance of labor and other duties. Such incomes
are exempted from taxation if their amount, in combination with other social incomes from
the organization for the year, has not exceeded the established limit.
The severance pay paid to an employee upon dismissal due to retirement is exempt
from income tax within nine average monthly salaries of an employee. The exemption
provided for social income can also be applied to the sum of the excess of the severance pay
over this limit (Doliya,& Singh, 2016). If the established limits for exemptions are exceeded,
the amount of the excess is included in the tax base for calculating the income tax of the
month in which the excess occurred. Further income tax is calculated in the generally
established manner .
![Assignment on Intermediate Managerial Accounting_3](/_next/image/?url=https%3A%2F%2Fdesklib.com%2Fmedia%2Fimages%2Fgl%2Fd1fa4569d1914a12aea052c4beff05b0.jpg&w=3840&q=10)
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