The requirements for the assessment
In May 2013, the International Accounting Standards Board in conjunction with the US Financial Accounting Standards Board published for public comment a revised exposure draft to deal with accounting for leases (currently IAS 17)
The IASB suggests that the proposals aim to “improve the quality and comparability of financial reporting by providing greater transparency about leverage, the assets an organisation uses in its operations and the risks to which it is exposes from entering into leasing transactions.”1
IAS 17 has been subject to criticism on a number of grounds and the issue of the updated exposure draft is the next stage on a long process to review and update the current reporting requirements after having taken due account of the criticisms and comments received from stakeholders.
Required:
Consider the importance of the current work programme examining Leases to the work of the IASB and the development of high quality international financial reporting standards. Review the extent to which the Exposure Draft (“ED”) issued in May 2013, discussions in the literature and comments on the ED identify current underlying weaknesses, and critically assess the significance of proposed revisions on the reporting framework and subsequent views of the IASB. Analyse and evaluate the impact of proposed changes on the financial statements of entities, and whether the proposals in the ED will serve to enhance reporting in this area.
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The requirements for the assessmentIn May 2013, the International .docx
1. The requirements for the assessment
In May 2013, the International Accounting Standards Board in
conjunction with the US Financial Accounting Standards Board
published for public comment a revised exposure draft to deal
with accounting for leases (currently IAS 17)
The IASB suggests that the proposals aim to “improve the
quality and comparability of financial reporting by providing
greater transparency about leverage, the assets an organisation
uses in its operations and the risks to which it is exposes from
entering into leasing transactions.”1
IAS 17 has been subject to criticism on a number of grounds
and the issue of the updated exposure draft is the next stage on
a long process to review and update the current reporting
requirements after having taken due account of the criticisms
and comments received from stakeholders.
Required:
Consider the importance of the current work programme
examining Leases to the work of the IASB and the development
of high quality international financial reporting standards.
Review the extent to which the Exposure Draft (“ED”) issued in
May 2013, discussions in the literature and comments on the ED
identify current underlying weaknesses, and critically assess the
significance of proposed revisions on the reporting framework
and subsequent views of the IASB. Analyse and evaluate the
impact of proposed changes on the financial statements of
entities, and whether the proposals in the ED will serve to
enhance reporting in this area.
