Financial Accounting Theory and Practice

Added on - 21 Apr 2020

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Running head: FINANCIAL ACCOUNTING THEORY AND PRACTICEFinancial Accounting Theory and PracticeStudent’s Name:University Name:Author Note
1FINANCIAL ACCOUNTING THEORY AND PRACTICETable of ContentsIntroduction................................................................................................................................2Discussion:.................................................................................................................................2Conclusion..................................................................................................................................5Reference List............................................................................................................................7
2FINANCIAL ACCOUNTING THEORY AND PRACTICEIntroductionThe current paper concentrates on the present lease standard of IAS 17, which hasbeen bounded by the criticism as an end result of untruthful accounting where thecomparability amongst the commercial organizations is unclear. With the intention ofovercoming this problem, the FASB and the IASB have incorporated the decision ofdisclosing the new standards of leasing (GurgelMota et al., 2016). As cited in the exposuredraft of the new standard, the most understandable rectifications is that the differentiationamong the financial and operating lease will be eliminated which explains that the all thetransactions of leasing would be disclosed in the balance sheet (Deegan 2013). Theseproposals have been bounded by the criticism as it will be having end results of theorganizations.The aim and goal of this paper has been to gain knowledge about the criticism and theconsequences that are faced during the time of new lease standard that would have an effecton the firms that make use of the IFRS and to gain knowledge about the fact that if the firmshave undertaken any preparations.Discussion:Internationally, leasing is regarded as the component of source of financing andtherefore, standards of lease accounting of the highest quality is needed. Currently, all thecompanies that have been listed are needed to follow the accounting standard rules that isissued by the International Accounting Standard Board. The IASB is regarded as acorporation and their main intention has been to establish a lonely set of increased excellenceand internationally identified reporting standard which is known as IFRS(Weil et al., 2013).
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