Convergence On A Global Accounting Standard For Leases Impacts Of The FASB/IASB Project On Lessee Financial Statements

Kilpatrick, Bob G.; Wilburn, Nancy L.

doi:10.19030/iber.v10i10.5980

Cited by 4 publications

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“…There are differences between US GAAP and IFRS in regard to reporting for ‘leases’ in both principles and rules (Tribunella ; Lindberg and Seifert ; Kilpatrick and Wilburn ). The method of differentiating between finance and operating leases under US GAAP is similar to that used in IFRS except that US GAAP provides detailed guidance.…”

Section: Acceptance Of Ifrs In the Usmentioning

confidence: 99%

“…The FASB and the IASB joint project to reconsider the current accounting treatment for leases commenced in August 2011 and an Exposure Draft has been issued in this regard. The primary change proposed is the requirement that all leases be capitalised in the lessee's statement of financial position (Kroll ; Kilpatrick and Wilburn ).…”

Section: Acceptance Of Ifrs In the Usmentioning

confidence: 99%

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An Investigation into the Potential Adoption of International Financial Reporting Standards in the United States: Implications and Implementation

Tan

Chatterjee

Wise

et al. 2016

Australian Accounting Review

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International Financial Reporting Standards (IFRS) have been adopted by most of the G20 countries. Given the broad worldwide acceptance of IFRS and significance of attaining comparability to facilitate free flow of capital, the US standard setter, the Financial Accounting Standards Board (FASB) made a commitment to jointly work with the International Accounting Standards Board (IASB) to explore the possibilities of convergence of US Generally Accepted Accounting Principles (GAAP) with IFRS. In 2007, the US Securities and Exchange Commission (SEC) eliminated the requirement that foreign companies listed on the US stock exchanges reconcile their IFRS‐based financial statements with the US GAAP. In the same year the US SEC issued a concept release to the public requesting comments on a proposal to allow US issuers to prepare financial statements in accordance with IFRS. Following these initiatives by the FASB and SEC, the aim of the present study is to investigate the implications of a potential full adoption of IFRS by the US. The present study details the challenges and benefits of adoption and outlines the steps required for a successful outcome of this process.

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Section: Acceptance Of Ifrs In the Usmentioning

confidence: 99%

Section: Acceptance Of Ifrs In the Usmentioning

confidence: 99%

An Investigation into the Potential Adoption of International Financial Reporting Standards in the United States: Implications and Implementation

Tan

Chatterjee

Wise

et al. 2016

Australian Accounting Review

View full text Add to dashboard Cite

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“…Also, there were a number of studies attempting to capitalize operation lease in an ex-ante method (Beattie, Edwards, & Goodacre, 1998;Bostwick, Fahnestock, & O'Keefe, 2013;Branswijck, Longueville, & Everaert, 2011;de Villiers & Middelberg, 2013;Duke, Hsieh, & Su, 2009;Ely, 1995;Fitó, Moya, & Orgaz, 2013;Grossman & Grossman, 2010;Imhoff, Lipe, & Wright, 1991;Kilpatrick & Wilburn, 2011;Lückerath-Rovers & Eindhoven, 2007), and in these studies, financial ratios change measurements were based on estimations including ISSN 1946-052X 2015 www.macrothink.org/ajfa 5 lease term, the remaining lease term, discount rate and depreciation method. However the estimation can be lousy and lacking accuracy (Han, 2010).…”

Section: Previous Researchmentioning

confidence: 99%

The Approaching Lease Accounting Regulations and Its Impact on Cost of Capital, "A Practical Case Study"

El-qawaqneh

Laili

Khairi

2015

AJFA

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We examine how the approaching international lease accounting regulations influence credit rating of particular airfreight company, we capitalize all of still effective operation lease agreements commencing in 2002 and expired on 2026. In particular we use actual operation lease data, not only the disclosed with off-balance sheet. Our results suggest that, on average, capitalization of over 12 months term operation leases, dramatically alter capital structure. Results either reports a positive impact on weighted average cost of capital WACC, credit rating is a financial risk assessment measurement used by credit holders, investors, and analysis, our results is consistent with the lease accounting standard sitters point of view; ISSN 1946-052X 2015 www.macrothink.org/ajfa 2 investors and credit holders have the right to obtain a full transparent picture about firms lease activities in benefit of all parties. We also find some evidence that the positive change in WACC is related to the increasing portion of capitalized lease liability accompanied with an escalating decreeing in conventional debt, in certain conditions, this result suggests that financial lease has the advantage over conventional debt. Asian Journal of Finance & Accounting

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Assessment of the New IASB Lease Accounting Model from Lessees Perspectives

Janasová¹

2013

ČFÚČ

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in 2009, the iASB and FASB started a public discussion and commenced work on a project referring to the recording of leasing in financial statements of companies using the international Accounting Standards for reporting. contrary to most national regulations, the current solution of the iAS and US gAAP require a completely different recording of operative and financial leasing in financial statements, and consider the transfer of risks and leasing rewards as the main criteria for their division. Such an approach, however, has been repeatedly criticized by many users of financial statements, because transactions that are very similar or even identical economically are caught up in a completely different manner depending on whether the recording entity evaluates the leasing subjectively. it may even lead to the manipulation of recording according to the requirements and intents of the recording entity. This contribution analyzes the advantages and disadvantages of some discussed procedures, in particular of those which could replace the current standards in the future (recording based on the use of the concept of right to use), and various effects on the report on the financial situation and profit or loss development when using the current methods or the newly suggested methods during the existence of leasing. The impact is demonstrated on a specific example of business premises leased by an entity conducting business in agriculture. We also focus on different approaches of the iASB and FASB to some related issues, for example concerning the update of the applied incremental interest rates, the conditioned parts of rent and the guarantees for the residual value. Abstrakt: iASB a FASB v roce 2009 zahájily veřejnou diskuzi a začaly pracovat na projektu týkající se vykazování pronájmů v účetních závěrkách podniků vykazujících dle mezinárodních účetních standardů. Stávající řešení iAS a US gAAP, na rozdíl od většiny národních úprav, vyžadují v účetní závěrce naprosto odlišně vykazovat operativní a finanční pronájem, přičemž jako hlavní kritérium pro jejich dělení považují hledisko převodu rizik a odměn z pronájmů. To je však dlouhodobě předmětem kritiky řady uživatelů účetních výkazů z toho důvodu, že ekonomicky velmi podobné až stejné transakce jsou zachyceny naprosto odlišným způsobem v návaznosti na to, jak pronájem vykazující subjekt subjektivně vyhodnotí. To může vést až k manipulaci s vykazováním dle potřeb a záměru vykazujícího subjektu. Příspěvek analyzuje výhody a nevý-hody některých diskutovaných postupů, zejména těch, které by v budoucnu mohly nahradit stávající standardy (vykazování založené na využití konceptu práva užívání), přičemž je analyzován rozdílný dopad do výkazu o finanční pozici a průběhu výsledku hospodaření za použití v současnosti používaných metod nově prosazovaných metod v průběhu pronájmu. Dopad je demonstrován na konkrétním příkladu nájmu provozovny subjektem podnikajícím v zemědělství. Předmětem zájmu jsou také rozdílné pohledy iASB a FASB na některé související záležitosti, např. týk...

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Convergence On A Global Accounting Standard For Leases Impacts Of The FASB/IASB Project On Lessee Financial Statements

Cited by 4 publications

References 0 publications

An Investigation into the Potential Adoption of International Financial Reporting Standards in the United States: Implications and Implementation

An Investigation into the Potential Adoption of International Financial Reporting Standards in the United States: Implications and Implementation

The Approaching Lease Accounting Regulations and Its Impact on Cost of Capital, "A Practical Case Study"

Assessment of the New IASB Lease Accounting Model from Lessees Perspectives

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