Explain this view of the iasb with suitable example

Assignment Help Financial Management
Reference no: EM132323867

Question

In the former accounting standard for lease both operating lease and finance lease were allowed, why did companies have a tendency to classify most of the lease contract as operating lease? How does positive accounting theory relate to this behaviour of managers?

According to the IASB, the implementation of IFRS 16 (the IFRS version of AASB 16) is expected to improve comparability between companies that lease assets and companies that borrow to buy assets. Explain this view of the IASB with suitable example.

The implementation of AASB 16 might have an effect on the leasing market if companies decide to buy more assets and as a result, lease fewer assets. Provide possible explanation as to why after the implementation of AASB 16, reporting entities might be more likely to buy more assets and lease fewer assets.

Reference no: EM132323867

Questions Cloud

Making more of an effort to empower employees : Employers are making more of an effort to empower their employees than was the case 20 years ago?
Please provide an explanation of the conditions : Please provide an explanation of the conditions, requirements, and factors that organizations need to consider when selecting the computer software
What is the break-even point and its importance : In detail, what are the use of internal rate of return (IRR), net present value (NPV), and the payback method in evaluating project cash flows.
Remedying a cost disadvantage associated with activities : Remedying a cost disadvantage associated with activities performed by forward channel partners (wholesale distributors and retail dealers) would not involve
Explain this view of the iasb with suitable example : Why did companies have a tendency to classify most of the lease contract as operating lease? How does positive accounting theory relate to this behaviour?
How much should she pay monthly : She wants to take a monthly payment option. There is a monthly interest of 3 percent on her purchase.
Improve working conditions at foxconn : How did Apple step in to improve working conditions at Foxconn, one of its major suppliers?
Impact on the us economy in a paragraph : Explain how government spending on war has a macroeconomic impact on the U.S. economy in a paragraph
Determine for both companies the inventory turnover : Elppa, on the other hand, builds computers for inventory prior to receiving an order. These computers are sold from inventory once an order is received.

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd