Accounting final

Final Paper

Many companies use leases to acquire higher priced assets. Leasing is an important activity for many entities. Presently some leases are capitalized and some are treated as operating leases. Opponents of this method criticize the accounting treatment because the present models do not meet the needs of users of financial statements because they do not always provide a faithful representation of leasing transactions. One reason is that operating leases are not capitalized. The International Accounting Board has issued a Proposed Accounting Standards Update (topic 842) which proposes significate changes to lease accounting.

Write a five- to seven-page paper, formatted according to APA style as outlined in the Ashford Writing Center. Your paper should also cite five of the research links below and include an in text citation, a quote from the article. Section heading titles should be centered and in bold.

Address the following questions:

• Introduction
• Explain the present rules for evaluating a lease and whether it is capitalized or not.
• Explain the new lease accounting rules.
• What affect will these new rules have on the balance sheet, the income statement and the cash flow statement?
• What industries would be affected more than others?
• Explain the proposed new Type A and B lease and the differences.
• Explain the effects of the proposed lease standards would have on the following:
• Presentation on the financial statements.
• How assets and liabilities would be computed.
• The effect to lease expense due to “Front Loading.”
• Interest charges.
• Year-end reporting.
• Financial disclosure notes.
• Income taxes.
•  Conclusion

The following links can be used for your research:

FASB Issues Lease Rules; Will Have Big Balance Sheet Impacts: http://www.bna.com/fasb-issues-lease-n57982067931/ 

FASB, IASB Revised Proposals Would Cause Significant Lease Accounting Changes: http://www.bna.com/fasb-iasb-revised-n17179874062/ 

New Accounting Proposal on Leasing Portends Big Changes: http://dealbook.nytimes.com/2013/05/16/significant-changes-proposed-in-lease-accounting/ 

Leases: Final Approach or Go-around?: https://www.kpmg.com/Global/en/IssuesAndInsights/ArticlesPublications/Documents/leases-final-approach-or-go-around.pdf 

New Lease Standards May Demand Two Sets of Books: http://ww2.cfo.com/gaap-ifrs/2016/01/new-lease-standards-may-demand-two-sets-books/ 

New Accounting Standards Will Affect Lease Reporting: http://www.truckinginfo.com/article/story/2015/12/new-accounting-standards-will-affect-lease-reporting.aspx 

Congress of the United States   https://www.reit.com/sites/default/files/media/Files/Policy/Letter-to-FASB-re-Lease-Accounting-5-17-12.pdf 

Proposed Lease Standard Facing Congressional Opposition: http://www.schneiderdowns.com/proposed-lease-standard-facing-congressional-opposition 

All Systems Go for FASB Lease Accounting Overhaul http://www.accountingweb.com/aa/standards/all-systems-go-for-fasb-lease-accounting-overhaul 

In depth: The leasing standard - A comprehensive look at the new model and its impact: http://www.pwc.com/us/en/cfodirect/publications/in-depth/fasb-lease-accounting-model-asc-842.html 

IASB issues leases standard; FASB to follow:  http://www.cgma.org/magazine/news/pages/iasb-issues-leases-standard-201613694.aspx?TestCookiesEnabled=redirect 

FASB Lease Accounting: http://proleasesoftware.com/integrated-modules/lease-module/fasb-lease-accounting/?gclid=CJH-3PWTvMsCFUI6gQod4AcOag 

New lease Accounting Standards are coming.  Will you be ready?: http://www.visuallease.com/fasb?gclid=CLvf0rKUvMsCFU0vgQodpbsLXg 

New FASB Lease Standard Could Inflate Balance Sheets: http://ww2.cfo.com/accounting-tax/2016/02/new-fasb-lease-standard-inflate-balance-sheets/ 

The Final Paper

• Must be five to seven double-spaced pages in length, excluding the title page and reference page and formatted according to APA style as outlined in the Ashford Writing Center.
• Must include a title page with the following:
• Title of paper
• Student’s name
• Course name and number
• Instructor’s name
• Date submitted
• Your paper should cite five of the research links above and include an in text citation, a quote from the article.
• Must use at least five scholarly sources listed above. Be sure to integrate your research rather than simply insert it.
• Must document all sources in APA style as outlined in the Ashford Writing Center and here and here.
• Must include a separate reference page, formatted according to APA style as outlined in the Ashford Writing Center.

Carefully review the Grading Rubric for the criteria that will be used to evaluate your assignment.