Advance Financial Accounting Report: Lease Accounting for Myer and NAB
VerifiedAdded on 2020/05/28
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AI Summary
This report provides an in-depth analysis of the lease accounting practices of Myer and National Australia Bank, two prominent Australian companies, under the guidelines of AASB 16 (Australian Accounting Standards Board) and IFRS 16 (International Financial Reporting Standards). The report begins with an introduction to Myer and NAB, outlining their core business operations and objectives. The discussion section delves into the specifics of AASB 16, detailing how companies are required to recognize operating leases on their balance sheets by measuring lease liabilities and right-of-use assets. The report highlights the importance of using implicit interest rates or incremental borrowing rates for lease payments, and the application of the cost model for measuring right-of-use assets. It also emphasizes the disclosure requirements of the standard, ensuring transparency in financial statements. The report then examines how Myer and NAB specifically account for their leases, including the treatment of operating lease payments, lease incentives, and the classification of leases as operating or finance leases. The conclusion summarizes the key findings, reiterating the impact of AASB 16 on the financial statements of both companies, including the recognition of lease liabilities and right-of-use assets. The report concludes that both companies comply with AASB 16 in their lease accounting practices.
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