At the beginning of 2016, IASB issued a new standard (IFRS 16) on leasing accounting. Explain...

At the beginning of 2016, IASB issued a new standard (IFRS 16) on leasing accounting. Explain the reasons behind this decision and the impact on companies’ financial statements.

Expert Solution

ekkarill92 answered 2 years ago

At the beginning of 2016, IASB issues a new accounting standard for lease transactions ( IFRS...

At the beginning of 2016, IASB issues a new accounting standard for lease transactions ( IFRS 16), which will be rffective from 01 January 2019. 1. Explain the accounting treatment for lease transactions on the lessee's financial statements under both the current accounting standard (IAS 17) and new standare (IFRS 16) on the lessee's financial statement.

The International Financial Reporting Standards (IFRS), issued by the International Accounting Standards Board (IASB: www.ifrs.org) has...

The International Financial Reporting Standards (IFRS), issued by the International Accounting Standards Board (IASB: www.ifrs.org) has been increasingly adopted around the world. The United States Securities and Exchange Commission (SEC: www.sec.gov ), in 2008, issued the publication: “Roadmap for the Potential use of Financial Statements Prepared in Accordance with International Financial Reporting Standards by US Issuers”. This Roadmap presented necessary steps to be taken for US to adopt IFRS starting 2014 and to be completed by 2016. Use the Internet...

Why is the IFRS set by the International Accounting Standards Board (IASB) not compulsory for the...

Why is the IFRS set by the International Accounting Standards Board (IASB) not compulsory for the member countries of IASB?

GAAP is the accounting standard used in the US, while IFRS is the accounting standard used...

GAAP is the accounting standard used in the US, while IFRS is the accounting standard used in over 110 countries around the world. GAAP is considered more rules based and IFRS is more principles based. Which standard do you feel is best suited for the US and if the SEC decides to switch over to IFRS how will that affect US companies?

Discuss "FASB and the New Leasing Standard"

PART A (MAX 500 words in total) Effective 2019, the new accounting standard on leasing, AASB16...

PART A (MAX 500 words in total) Effective 2019, the new accounting standard on leasing, AASB16 Leases, will replace the existing leases standard, AASB117. It will remove the classification of leases that has been used for decades and which divides leases into operating and financial leases from the perspective of lessees. The new standard requires leases that were formerly known as operating leases (and were kept off balance sheet) to be recognised for balance sheet proposes (both an asset and...

The International Financial Reporting Standard IFRS13 Fair value measurement was jointly issued by the IASB and...

The International Financial Reporting Standard IFRS13 Fair value measurement was jointly issued by the IASB and the FASB in May 2011. The standard defines fair value, establishes framework for measuring fair value and requires significant disclosures relating to fair value measurement. Required: a. Discuss the main principles of fair value measurement as set out in IFRS 13. b. Describe the three-level hierarchy of inputs into valuation techniques provided for in IFRS 13. c. Describe the valuation techniques. d. List five...

Sheridan Leasing Limited, which has a fiscal year end of October 31 and follows IFRS 16,...

Sheridan Leasing Limited, which has a fiscal year end of October 31 and follows IFRS 16, signs an agreement on January 1, 2020, to lease equipment to Irvine Limited. The following information relates to the agreement. 1. The term of the non-cancellable lease is six years, with no renewal option. The equipment has an estimated economic life of eight years. 2. The asset’s cost to Sheridan, the lessor, is $309,000. The asset’s fair value at January 1, 2020, is $309,000....

"Capital Leases and Operating Leases" The new leasing standard accounting Standards Update (ASU) 842 will require...

"Capital Leases and Operating Leases" The new leasing standard accounting Standards Update (ASU) 842 will require lessees to recognize the assets and liabilities on the balance sheet created by the leases. This standard update will eliminate the primary form of off-balance sheet accounting and require additional disclosures on leasing transactions. Use the Internet or Strayer Library to research the provisions of (ASU) 842 applicable to the lessee. Identify two (2) material differences in lease reporting under the new standard and...

IAS 16. Fixed Assets. We are a graphic arts company, and at the beginning of 2016,...

IAS 16. Fixed Assets. We are a graphic arts company, and at the beginning of 2016, we acquired a new printer. The price of this printer was 25,000 euros. The additional expenses of the purchase were as follows: Installation and assembly: 3.000 euros. Transportation and delivery: 1.150 euros. All operations have a 21% VAT (not included), and the payment of the amounts is made by bank check. During January, the assembly and installation of the new printer takes place, which...

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