The project's main parts are as follows:1. Provide a meaningful background of the Leases.2. Describe the types of Leases, disclosure, and reporting issues.3. Track the modifications regarding the Leases based on the accounting standards.4. provide a practical case for the Leases form actual life (case study).5. Prepare appropriate conclusion and formal report.

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1. Provide a meaningful background of the Leases.

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter11: Notes, Bonds, And Leases

Section: Chapter Questions

Problem 26E

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Concept explainers

Renting Vs Buying

Renting means occupying a house for a period and paying an amount in exchange for such service. Renting does not require huge investments. Payments under renting are periodic and the amount is relatively low compared to EMIs.

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The project's main parts are as follows:
1. Provide a meaningful background of the Leases.
2. Describe the types of Leases, disclosure, and reporting issues.
3. Track the modifications regarding the Leases based on the accounting standards.
4. provide a practical case for the Leases form actual life (case study).
5. Prepare appropriate conclusion and formal report.

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The IASB and FASB are collaborating on a joint project to revise accounting standards for leases. Briefly describe the direction the project is taking.
Explain the basis for each of the criteria used to classify leases
Which of the following is a required financial statement presentation by a lessee for both capital leases and operating lease? A. Amortization Expense and Interest Expense B. Lease Expense C. Right-of-Use Asset and Lease Liability D. The reduction of the Lease Liability as a financing activity
Which of the following statements is correct in accordance with AASB 16 Leases? Group of answer choices A lease contract, or part of a lease contract, conveys the right to transfer ownership of an asset for a period of time in exchange for consideration. Payments that are made by a lessee at commencement date are included in the initial amount recognised for the lease liability. Payment for executory costs reimbursed by the lessee after being paid by the lessor on behalf of the lessee are included in the calculation of lease payments. Variable lease payments may be increased or decreased during the lease term because of changes in facts and circumstances occurring after the asset is made available to the lessee to use, other than the passage of time.
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Discuss the accounting and reporting for special features of lease arrangements.
All of the following are similarities with respect to the accounting for leases, under IFRS and GAAP, except: lessees recognize a right-of-use asset and related lease liability for leases with terms longer than one year. lessees use the same general lease classification criteria to determine if lessees classify leases as finance or operating. lessors under IFRS and GAAP use the same model to account for sales-type leases. GAAP and IFRS have similar qualitative and quantitative disclosure requirements for lessees and lessors.
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