International Financial Reporting Standards (IASB) Report
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Added on 2020-04-07
International Financial Reporting Standards (IASB) Report
Added on 2020-04-07
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Running head: ACCOUNTING THEORYAccounting TheoryName of the StudentName of the UniversityAuthor Note
1ACCOUNTING THEORYTable of ContentsTable of Contents.............................................................................................................................1Implication of measurement methodologies of financial reporting under IASB and the leasingstandard............................................................................................................................................2The measurement method provided decision-useful information and what you understand thebenefits of it.....................................................................................................................................3Critical analysis of the techniques Sigma Healthcare Limited........................................................3The impact it has on the chosen stakeholder...................................................................................3The ways AASB 16 would benefit or disadvantage the stakeholder...............................................4The effect that AASB 16 have on the Sigma healthcare stakeholder’s income statement, balancesheet and cash flow statement and its effect on the stakeholder’s financial statements..................5AASB 16 would result in reporting that would be more useful to users.........................................6References........................................................................................................................................8
2ACCOUNTING THEORYImplication of measurement methodologies of financial reporting under IASB and theleasing standardThe measurement methodologies that have been used for financial reporting under IASBare as follows:•The cost on the historical basis;•The value given to business which is also known as current cost;•The fair value;•The realizable value; and•The value which is in use. This is used in accrual accounting which is used to measure the costs and the incomeearned as recording in cash flows (Andon, Baxter & Chua, 2015). This is the current valuemeasurement. In the absence the direct evidence is given and it argues on various characteristics.There are changes in the system and therefore there is movement of measurement in thehistorical cost to the new basis which is the fair value. The International Accounting StandardsBoard (IASB) has the ‘initial and subsequent measurement’. The new IRFS will change the procedures and it will include the operating lease.Secondly the lease if not capitalized will be shown in the balance sheet and that will berecognized as the right to use such asset and then there arise the liability for the obligation(Burkins, 2014).
3ACCOUNTING THEORYThe measurement method provided decision-useful information and what you understandthe benefits of itThe standard of IASB is responsible for International Financial Reporting Standards.IFRS which is incorporated and it is consistent with the practical solutions which deals with thefinancial reporting which have emerged over the years and it is built on accumulated businesspractices of centuries (Cummins & Worley, 2014). The IFRS is not a completely new anduniform approach to financial reporting, but it is the result or outcome of a. There are uncertainfuture outcomes and it is helpful to provide a clean and fair picture of the current position as wellas the performance to date. The current position shows that, among other things:•The assets that are to be measured under IASB ;•The various assets measured in different bases (Duke, 2017).•The various liabilities which are to be valued or can be measured at different bases (Habidinet al, 2016).Critical analysis of the techniques Sigma Healthcare LimitedThe impact it has on the chosen stakeholderThe new lease standards which have a huge impact on stakeholders of the company that is SigmaHealthcare Limited .The new standard enables in higher level of interest rate (Oliver,2014).Thiswill impact the industries and Sigma. The retailers will have their shops in the mall and thus itwill include the renewal options of the company. Then it will have an impact on the miningservices and therefore it will help in the expensive equipment held in the operating leases. In theindustry it will be required to capitalize the amount in the balance sheet and for the industry. For
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