Accounting for Leases and the Failure of Convergence

Hussey, Roger

doi:10.30958/ajbe.4.1.1

Cited by 3 publications

(2 citation statements)

References 9 publications

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“…Lease accounting should ensure that all the assets and liabilities arising from the leases are recognized in the statement of financial position. The results show that the biggest disagreement has referred to the fact that the lease was recognized as an asset in the financial statements (Hussey, 2018).…”

Section: Interpretation Of the Concept Of Leasementioning

confidence: 98%

Problems and Solutions for Lease Valuation and Accounting in Latvia

Arbidāne

Puzule

2019

SJPU

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In the legislation of the Republic of Latvia, leasing transaction accounting complies with the provisions no. 17 of the International Accounting Standard "Leasing", which expired on January 1, 2019. The problem for the lessee in the accounting of leasing transactions is also the introduction of a new standard for companies that prepare annual financial reports in accordance with the requirements of international accounting standards. The aim of the study is to examine accounting problems and assess leasing transactions in Latvia and offer solutions. The study examined the justification for the assessment and accounting of leasing transactions in line with international accounting standards and identified issues of assessment and reporting in Latvia, possible solutions to improve the quality of leasing transactions have been worked out, offering necessary changes in legislation and revision of methodological documents.

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Section: Interpretation Of the Concept Of Leasementioning

confidence: 98%

Problems and Solutions for Lease Valuation and Accounting in Latvia

Arbidāne

Puzule

2019

SJPU

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“…Este estudo é importante por três principais razões. Primeiro, apesar de a IFRS 16 ter sido objeto de vários estudos com foco nos impactos para os indicadores financeiros das empresas (Branswijck et al, 2011;Harms, 2020;Öztürk & Serçemeli, 2016;Pereira, 2019;Quach & Tu, 2020;Tai, 2013;Wong & Joshi, 2015) e no lobbying para a criação de tais normas contábeis (Beckman, 2016;Hussey, 2018;Osei, 2017), no conhecimento dos autores, este é o primeiro estudo a realizar a comparação entre as normas de leasing do FASB e do IASB, além de estimar quais seriam os efeitos da adoção da IFRS 16 nos Estados Unidos. Segundo, a norma de leasing é uma das normas contábeis que, historicamente, mais sofreram alterações, e o crescimento expressivo das operações de arrendamento operacional, com divulgação somente em notas explicativas, deu origem ao termo financiamento fora do balanço, ASAA Santana, V. de F., & Serafim, J. D. (Zeff, 2005).…”

Section: Introductionunclassified

Efeitos das Diferenças na Política Contábil de Leasings entre o FASB e o IASB

Santana,

Serafim

2024

ASAA Journal

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Objective: This research investigates the effects of the 2019 US lease standards for US lessee companies, comparing with the potential effects of IFRS 16 to explore the economic reasons that would have led the FASB and the IASB to diverge from their joint lease standard project. Method: We hand-collected detailed data on leases for 500 US lessees firms’ 2019 financial statements to first analyze Topic 842’s effects on financial ratios and to simulate these effects had the FASB adopted the same earnings recognition criteria in IFRS 16. Next, we investigate the value relevance of these observed and simulated effects on the stock market. Results: Topic 842 generated significant variations in companies' financial indicators, but it was not possible to identify the value relevance of these variations due to model limitations. The IFRS 16 simulation shows a significant increase in EBIT and operating cash flows, but a drop in net income, which seems to have been incorporated into stock prices. This suggests the FASB’s decision to diverge from the IASB could include the desire to avoid lower earnings and their negative impacts on the stock market. Contributions: This research adds to the literature first by focusing on the US when most of the recent studies investigated the IFRS world and, second, by exploring economic reasons rather than the hierarchy of power between the FASB and the IASB. Finally, we add a novelty derived from the detailed manual work which allowed us to estimate the effects had the US firms been under IASB’s jurisdiction.

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