Overview The Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) are responsible for ensuring that all relevant and material financi

Overview

The Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) are responsible for ensuring that all relevant and material financial information is properly codified in the Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS).

The purpose of this assignment is to give students experience using the FASB Accounting Standards Codification (ASC) and the International Financial Reporting Standards (IFRS). These two sources are the most current accounting guidance for organizations required to use US GAAP and/or IFRS. Students will also check for any proposed or pending changes to the most current accounting guidance. Accounting for leases is used as an example as there was a major Accounting Standards Update (ASU) issued by the FASB and IASB in 2016 with at least one additional ASU and/or IFRS issued each subsequent year. Knowing how to access the most current and pending changes to US GAAP and IFRS is a skill employers and clients will expect of accountants.

Instructions

For this assignment, you will select a public for-profit corporation of your choice to write a 3–4 page (not counting the cover page, abstract or reference list) report in which you:

1. Summarize the GAAP versus IFRS existing and pending (if any) requirements for accounting for leases.
   • Reflect knowledge of both the principles and standards of each and include any relevant information that impacts accounting for leases.
2. Analyze the impact of GAAP and IFRS on the reporting of your chosen corporation’s leases.
   • Reflect knowledge of GAPP and IFRS and include information specific to your chosen corporation.

The next two tasks will ask you to analyze including lease liability and eliminating lease liability and the impact each has on the financial ratios of your chosen corporation.

1. Analyze the impact that including lease liability has on the financial ratios of your chosen corporation, report your conclusion.
   • Provide a detailed description and supporting calculations.
   • Provide conclusions based on the information gathered in the analysis.
2. Analyze the impact eliminating the lease liability has on the financial ratios of your chosen corporation by recalculating the debt-to-equity ratio, report your conclusions.
   • Provide a detailed description and supporting calculations.
   • Provide conclusions based on the information gathered in the analysis.
3. Use four quality academic sources to support your writing. Choose sources that are credible, relevant, and appropriate. Cite each source listed on your source page at least one time within your assignment. For help with research, writing, and citation, access the library or review library guides.
   • It is required that at least one IFRS and one FASB ASC be included in your reference list and cited in your paper.

Resources

To access the International Financial Reporting Standards (IFRS)Links to an external site. go to the website and register for free.

1. To register click on the Dashboard icon to the left of the Search icon in the top right-hand corner and select Register to complete the registration process.
2. Select Projects at the top of the page to determine if lease accounting (IFRS 16) is a post-implementation review (PIR) or pronouncement in review (PIR) or open for comment items regarding accounting for leases.
3. The live PIR projects are listed at the bottom of the page.

To access US GAAP, go to FASB Accounting Standards CodificationLinks to an external site..

1. Contact your instructor who will provide you with the login information you will need to access the site.
2. Select FASB Accounting Standards Codification.
3. Type 842 in the codification search in the left-hand menu.
4. Review the information available for leases, these are the current Generally Accepted Accounting Principles (GAAP) regarding accounting for leases.

Go to the Financial Accounting Standards Board (FASB)Links to an external site. website.

1. Select Emerging Issues Task Force (EITF) in the Quick Links.
2. Review the EITF issues to identify the information that refers to accounting for leases in the post-implementation review or the exposure drafts areas.

This course requires the use of Strayer Writing Standards (SWS). The library is your home for SWS assistance, including citations and formatting. Please refer to the Library site for all supports. Check with your professor for any additional instructions.

The specific course learning outcomes associated with this assignment are:

• Determine the impact of accounting standards on the recording of leases for a given company including an analysis of its effect on financial tools.

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