Implications of New Lease Standard on Financial Reporting

Running head: LEASE
Lease
Name of the Student
Name of the University
Author Note

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Executive summary:
The current paper recapitulate the chosen journal articles on the topic related to
implementation of new lease standard and its implications to the users and preparers of
financial report. Two articles have been sourced from the journal of corporate finance and
they have been assessed in terms of the implementation of new lease standard. Differences
and similarities between the articles have been demonstrated in the report. Furthermore,
research findings implications have been presented in terms of its importance to the
accounting regulators, accountants and external users of financial report.

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Table of Contents
Introduction:............................................................................................................................ 2
Discussion:................................................................................................................................2
Explaining the purpose of article one by exploring research question:....................................2
Explaining the purpose of article two by exploring research question:....................................4
Evaluating the differences and similarities between the findings of two studies:....................5
Implication of research findings to external reporting stakeholders:.......................................5
Conclusion:...............................................................................................................................6
References list:.........................................................................................................................6

LEASE
Introduction:
The report is prepared to conduct review on findings generated from literature by
researching on selected journal articles. The findings generated from analyzing the journal
articles have been presented with its implications on the financial reporting of the
Australian companies. For this purpose two research papers have been selected relating to
the accounting issues concerning lease. The research paper concentrates on the implication
of the new lease standard on the reporting system and stakeholders. Two articles titled “The
effect of new lease accounting rules on profitability analysis in retail industry” and “Bringing
leased assets onto the balance sheet”. New lease standard is an important topic as the
current lease standard has been highly criticized. The aim of research is to make
contribution on the lease proposal by collecting different perspectives an addressing the
criticism and ambiguity associated with the current lease standard.
Discussion:
Reasons for selecting the two articles:
 The reasons for selecting the articles are to analyze the impact of new lease standard
on the financial reporting of business.
 The research paper helps in evaluation of ratios in terms of how they are significantly
impacted by the implementation of new rules.
 Second research paper examining the accounting treatment implications by bringing
the leased assets onto the balance sheet would help in analyzing the new rules set
for lease.