Operating Lease And Finance Lease - 1307 Words

Introduction What is accounting? Accounting is to saving, arranging, plus storing, sorting, retrieving, summarizing, and presenting the information in various reports and analyses and also records the financial transactions. Accounting also focus on preparing a transparent and general purpose form of financial statement to people outside of the company (What is accounting?), so that the public could easily understand the financial status of a company, but as a new specific accounting standard released the regulations about leasing, things are getting unclear. In this paper I am going to discuss about what are the definition of both operating lease and finance lease, and mainly focus on operating lease due to the majority of companies using this standard. Then find out what makes companies tend to choose the certain leasing standard and also to discover the relationship between them. After that I will discuss how this could affect the investors’ decision, also to discover the benefit that the lessee and lessor might have from the leasing standard. After find out the problem and why it occurred, I will discuss how this issue could be solved and try to find out the solution through the International Accounting Standards Board (IASB). What is the problem? In 2005, IAS 17 was adopted in Australia by Australian Accounting Standard Board (AASB) as AASB 117 (AASB, 2004). There are two types of leases in AASB 117, finance lease and operating lease. Based on the GenerallyShow MoreRelatedQuestions On Finance Lease And Operating Lease Essay894 Words   |  4 Pagesfound from the IAS 17; the lease is defined that â€Å"A lease is an arrangement whereby the lessor coveys to the lessee in return for a payment or series of payments the right to use an asset for an agreed period of time†. (IAS 17, 2003). There are two types of lease: finance lease and operating lease. The following parts will identify them separately and accounting treatments will be discussed in lessees’ and lessors’ aspect. Firstly, it is the finance lease and it is a lease that transfers substantiallyRead MoreCorporate Accounting - Part 1 Lease872 Words   |  4 PagesTHE LEASE. GIVE REASONS FOR YOUR ANSWER. Both Purple Ltd and Lemon Ltd should classify the lease as a finance lease based on the below. Present value of all future lease payments = ($8,000 – $1,000) X 3.8897 = $27,228 Present value of guaranteed residual value = 50% X 7,200 X 0.6499 Total present value = $27,228 + $2,340 of the Bulldozer The present value of the minimum lease payments is substantially all of the fair value of the leased asset at the inception of the lease. Read MoreDiscuss the Concerns Raised by Users Regarding to the Usefulness of Aasb 117744 Words   |  3 PagesAASB 117 Leases requires lessees to classify leases as either finance leases or operating leases. The accounting treatment required under each approach is very different and this has raised concerns by investors and other financial statement users regarding the usefulness of the information provided. This essay will critically discuss and the criticisms and usefulness of lease accounting treatment. It will also examine lessee firm’s responses to Australian Standard 117 Accounting for Leases. DefinitionRead MoreLease Standards Essay1459 Words   |  6 Pagestake in order to be ready for the introduction of the new standards (new lease accounting rules) on January 1st, 2019. As you might know, leasing is a common form of finance for many businesses, especially in sectors like the airline industry, retail, and shipping. The new lease standard represents a change in rents for lessees, which affect all companies and institutions whether it is public, private or not-for-profit that lease assets like real estate; airplanes; boat and construction, office or producingRead MoreLease Of Lease And Operating Lease Essay893 Words   |  4 Pagesfound from the IAS 17; the lease is defined that â€Å"A lease is an arrangement whereby the lessor coveys to the lessee in return for a payment or series of payments the right to use an asset for an agreed period of time†. (IAS 17, 2003). There are two types of lease: finance lease and operating lease. The following parts will identify them separately and accounting treatments will be discussed in lessees’ and lessors’ aspect. Firstly, it is the finance lease and it is a lease that transfers substantiallyRead MoreNew Considerations For Land For Lease954 Words   |  4 PagesNew considerations for land Under the new accounting standards for leases, the right-of-use for the land element in a lease (lease of land and a building) will have a separate lease component from the building. This would not have to be done if it is found that the separation of the two would have insignificant effect on the accounting of the lease (842-10-15-29). Our company currently has leases involving factory buildings, warehouses, and land so this will directly affect us. Impact on the FinancialRead MoreOperating Lease Financing And Financial Performance Of State Owned Sugar Companies Essay973 Words   |  4 PagesOperating Lease financing and financial Performance of State owned sugar manufacturing firms in Kenya Isabwa Harwood Kajirwa1 Omete F. Ikapel2 1,2Department of Business Management, University of Eldoret, P.O. Box 1125-30100, Eldoret, Kenya, Email: harwoodisabwa@yahoo.com Abstract This study analyses the effect of operating lease finance on financial performance of state owned sugar firms in Kenya. The study used the retrospective research design in collection of data. A target population ofRead MoreThe International Accounting Standards Board1662 Words   |  7 Pagespurchases of leases. The joint effort of the two has finally come to an end, with the new standards being issued out on February 25, 2016. These new standards will come into effect starting in 2019. It is important that our diversified company begins preparing for the major implications of these new standards and fully understand what we are dealing with. The Accounting Standards Update No. 2016-02, Leases (Topic 842) will have an immediate effect on our company because is involved in many lease-relatedRead MoreThe Financial Accounting Standards Board Essay937 Words   |  4 Pagesto the new procedures. Leases are part of a Joint Project that is undergoing convergence due to reporting differen ces between US GAAP and IFRS; that consist of revisions to the standards and clarification of its new terms, which will impact the manner US companies report leases in financial statements. Leases are part of a Joint Project that is undergoing convergence due to reporting differences between US GAAP and IFRS. Leases make up a major part of businesses that lease equipment such as carsRead MoreWhat Does This Change Mean For 7 Twenty Stores? Essay1292 Words   |  6 Pagesthought to be most affected industry from changes in accounting for leases. At the moment most of the retail leases in the company are treated as operating lease. Changes in the lease treatment means retail companies will no longer be able to expense those leases rather have to capitalise it on balance sheet as asset and liability. Retailers like 7 eleven will book a â€Å"right-of-use† (ROU) in assets and present value of future lease payments in liabilities, inflating both the sides of the balance sheet

Australian Federalism Free Essays

This essay will outline the issues discussed during the ‘Policy Roundtable on Federalism’ hosted by the Academy of Social Sciences in Australia (ASSA) and the Institute of Public Administration Australia (IPAA) on the 17–18 May 2007 and will explore their impact on federalism and provide possible steps to overcome them. The Roundtable discussion made it apparent that Australian federalism is dysfunctional and needed shaping up. The reasons included a combination of external and internal factors and pressures. We will write a custom essay sample on Australian Federalism or any similar topic only for you Order Now The pragmatic reform process could address these factors and pressures to improve Commonwealth-State relations. This could achieve enhanced policy outcomes for the Australian community and provide a system of government that â€Å"delivers the Australian people the opportunities they deserve† (Brumby 2008). David Black (1998) describes federalism as ‘the process by which the Commonwealth of Australia was formed on 1 January 1901, was unusual then, and still is†. The federal system has provided a relatively stable cooperative form of government, however, changing demographics, global pressures and fiscal situations within government have meant that the system is now seen as being in a malaise and in need of repair (Wanna 2007). The modernisation and globalisation of markets, media and communication has eroded regional identities in Australia. In the past the Australian states were protected from a centralised form of federalism but as modern technology reduced the physical distance institutional barriers were decreased. These global pressures mean that Australian states risk becoming agent providers for a central government (Wanna 2007: page). Increased activity has resulted in hyper-interaction involving all three levels of government. Additionally, lack of cultural regions in Australia unlike most other federations meant lack of regionally based governance system (Wanna 2007: 276). Australia retains a highly centralised fiscal system, holds a high amount of concurrent powers across all levels of government and lacks institutional barriers that prevent a centralised system. Fiscal imbalance between states and the Commonwealth impacts directly at a regional level even though policies are driven nationally. Concurrent Commonwealth-State powers also impact at regional level due to lack of adequate attention given to real impacts while decisions are made at federal level. The reduced effectiveness of federalism has contributed towards these issues and has failed to keep pace with modern times. It is now in need of repair to make it more efficient and capable of providing support to the modern Australian public. Current federal arrangements are holding back necessary micro-economic reform while there is a continuous struggle to respond to global economic forces. (Podger 2008). Although federalism can work it is not performing at the level expected. Participants at the Roundtable agreed that the process of reform can improve federalism but needs a different policy approach. Individual agreements on shared responsibilities will be needed to reshape policy areas. Increased cooperation and collaboration around national and state issues would need to be achieved. Participants started by looking at improving the generic architecture by enhancing the primary cooperation of levels of government through the Council of Australian Governments (COAG). This could be the platform for any further detailed reform in order to avoid policy making failures around shared responsibility between governments. It is also important to note that the attendees agreed reform would need to start from the current position and not echoing any previous attempts. The Australian federal system is characterised by a significant level of vertical fiscal imbalance and this issue would need to be addressed to assist in reforming federalism. The Commonwealth holds the monopoly on tax revenue from income and GST and much of this is paid back to the states by way of Specific Purpose Payments (SPPs). These SPPs allow the Commonwealth to grant funds to states with conditions in areas that are constitutionally the states’ domain. As SPPs make up 40 % of Commonwealth grants the streamlining of these with a focus on outcomes would allow increased efficiency. In addition, guaranteed revenue would allow states to fund their responsibilities without central pressures. Whilst this imbalance could be reduced by assigning state expenditure responsibilities to the Commonwealth, it is an unrealistic expectation to reduce such a significant imbalance. (Carling, 2008: page/s) Clearly defined roles and responsibilities for the different levels of government is essential, as Carling (2008: page) states, â€Å"A federal system needs to be ?rmly anchored to a rational allocation of roles and responsibilities for the different levels of government† Lack of clearly defined roles can cause duplication of processes and conflict in policy making, giving states the opportunity to avoid accountability. A review of roles and responsibilities is a logical starting point, with the functional roles of Commonwealth and the state’ clearly defined. This may require that the Commonwealth takes a leadership role to ensure states are able to effectively deliver services. It is important to understand that the distribution of responsibilities between the levels Government has evolved aver time, and will presumably continue to change as policy and political imperatives require. (Podger 2008) Collaboration between governments to deliver long term sustainable national solutions is needed to face the significant social, economic and environmental challenges. Recently, all three levels of government have become receptive towards the idea of cooperative federalism. For effective federation architecture of cooperation consisting components such as principles to guide, supporting legal and institutional arrangements and appropriate cultural practices and attitudes are required. Focus could be on formalisation of COAG through intergovernmental agreement, clarification of COAG and ministerial council relation, ongoing review of federal financial relations and development of cultural practices to support the best of federalism. The change offers opportunities to make lasting improvements and Australian governments should seize the opportunity towards delivering effective national responses and generating substantial benefits for Australians. (Wanna, J. May 2009) Although the Australian federal system is perceived as declining and in need of reshaping, Australia is a prosperous nation. Federalism has seen Australia through times of significant stress including depression and war, and has led to the development of a welfare state. Rapid globalisation and modernisation demands that federalism adapt and adjust to meet competing demands. The options outlined in this essay provide the extending steps for already happening improvements by an ambitious government. How to cite Australian Federalism, Papers

Alexander Movie Historical Accuracy Essay Example For Students

Alexander Movie Historical Accuracy Essay Alexander the Great Who is Alexander and why is he so great? Born in Pella in 356 BC (Central Macedonia, Greece) Alexander was one of the most successful military commanders in history, winning his first battle at the age of 16. By the age of 20 he was the king of his homeland Macedonia succeeding his father Philip II after he was assassinated. By 25 Alexander had conquered the known world (from Greece, Egypt to Pakistan). British Historian Tom Holland described him as ‘the ultimate conqueror’ The Film The film is based on Alexander the Great, the military commander and King of Macedonia, and his life experiences, hardships and triumphs. Directed by Oliver Stone, the cast included Colin Farrell, Anthony Hopkins, Angelina Jolie, Val Kilmer and Jared Leto and was shot in locations such as England, Morocco and Thailand. Overall the historical action film received poor ratings. 16% from Rotten Tomatoes, 2/4 from Roger Ebert, 5.5/10 from IMDb and 39% from Metacritic. Bucephalus Alexander commemorated his conquests by naming over 70 military forts Alexandria, after himself and 1 Bucephala for his horse Bucephalus. Bucephalus originally was strong and untameable by even King Phillips best riders however a 13 year old Alexander tames the stallion, realising the horse is afraid of its own shadow he turns it towards the sun. Bucephalus served Alexander in numerous battles but died due to fatal injuries at the Battle of the Hydaspes (June 326 BC). The film captures the taming and death of Bucephalus perfectly according to historical accounts in 344 BC. Ptolemy The film begins with Ptolemy as he narrates Alexanders story, reciting his memories to a scribe in Alexandria, Egypt. Ptolemy (367 BC – c. 283 BC) actually fought alongside Alexander in his conquests as a Macedonian general and became ruler of Egypt in 323 BC. In the film Ptolemy refers to the hero as â€Å"Alexander the Great,† however history shows that the â€Å"Great† was not added until much later, in Roman times. Alexanders Parents Stone recreated the scarred right eye of Alexanders father, Philip II as he lost his eye to a Greek arrow during the siege of Methone in 354B.C. Alexanders mother Olympias convinced Alexander that Phillip was not his father and that he was the son of Zeus himself, when one night in the form of a snake he impregnated her. Angelina Jolie’s portrayal is very historically similar to Olympias, who was the fourth of Philips seven wives and was believed to kill Philip or hire someone to kill him in 336 BC. Battle Scene Alexander had to fight the battle of Granicus, Siege of Tyre, Issus and Gaugamela to eventually beat King Darius however the film only has 1 battle which is actually an amalgamation of two battles fought between the them (Gaugamela and Issus). The Macedonian military equipment seen in the battle was accurately reproduced due to the director’s historical consultant Fiona Greenland, an oxford graduate. However in the film, Alexander wore a lions-head helmet. According to Plutarch, Alexander wore a burnished iron helmet molded for him by the Greek craftsman Theophilus. Stone apparently decided to fashion a battle helmet based on later representation of Alexander as Heracles. Additionally there is an outstanding representation of the Macedonian infantry phalanx wielding their 17ft long spears. Before the Battle Before the battle, Alexander says to the Macedonians â€Å"for the glory of Greece.† Ancient sources however write that Alexander didn’t fight for Greece but for Macedonia. Three ancient historians detailed Alexander’s speech to the army before the battle and each one of them made a clear distinction between Greeks, Macedonians, Thracians and Illyrians as four distinct civilizations that made Alexanders army. This created confusion throughout Oliver Stone’s film whether the people from Macedon differed from other Greeks. Ironically the film synopsis indicates a distinction between Macedonians and Greeks. It reads: â€Å"Alexander led his virtually invincible Greek and Macedonian troops.† Film Response - Citizen Kane EssayThe Battle of Hydaspes At the river Hyphasis, before Alexander reached India, Alexanders troops refused to go any further. A Greek nobleman named Koinos spoke to Alexander in hopes to return home. Stone says that in the film the troops were intentionally defended by a war veteran named Krateros, as he was one of Alexanders trusted friends. The final battle showed in the film, the Battle of Hydaspes was heavily dramatized by Stone and altered from history. However Alexander’s clothes and armor were very high in quality, as the research was done by a team of historians at Oxford University. In the film Alexander was brutally injured by an arrow during the battle, however this didn’t happen until during a siege later that same year. Furthermore, the battle of Hydaspes was not fought in a sunlight forest like the film shows, but on muddy plains during the night. Alexanders Death May 29th 323BC Alexander hosted a banquet for his admiral, Nearchus, with whom he was planning a voyage to Arabia. After drinking a large beaker of wine Alexander had to be carried to bed and awoke the next day with a fever. His condition grew worse and his friends pressed the question â€Å"to whom do you leave your empire?† Alexander barely being able to speak mutters â€Å"To the strongest†. However surely a man strong enough to be Alexander’s heir did not exist, as in Alexander’s short career he had conquered some 2 million square miles of land. Alexander died in Babylon on June 10th, 323 BC from an unknown cause of death. Artwork by German painter Karl Theodor von Piloty (1 October 1826 – 21 July 1886) Alexanders Legacy Alexander significantly changed the world in several ways. He showed the Greeks a new ways of fighting using tactics that aided his undefeated streak in battle (especially when he was outnumbered). He adopted Persian and Indian cultures and taught his empire to change their view of the world. He united the West and the East together so that people of many descents were speaking a common language, using common currency to trade goods and sharing knowledge such as medicine, math and science. Bibliography: https://en.wikipedia.org/wiki/Alexander_the_Great http://www.historyofmacedonia.org/AncientMacedonia/AlexandertheGreat.html http://www.biography.com/people/alexander-the-great-9180468 http://www.britannica.com/biography/Alexander-the-Great http://www.bbc.co.uk/history/historic_figures/alexander_the_great.shtml http://www.history.com/topics/ancient-history/alexander-the-great http://www.ancient.eu/Alexander_the_Great/ http://www.eyewitnesstohistory.com/alexanderdeath.htm http://www.sbs.com.au/ondemand/video/472665667520/secret-life-of-alexander-the-great https://en.wikipedia.org/wiki/Ptolemy_I_Soter https://en.wikipedia.org/wiki/Death_of_Alexander_the_Great https://www.archaeological.org/pdfs/papers/AIA_Alexander_Review.pdf http://www.boxofficemojo.com/features/?id=1601 http://www.historyofmacedonia.org/AlexanderOliverStone.html http://www.moviemistakes.com/film4636/corrections https://en.wikipedia.org/wiki/Alexander_(2004_film) https://prezi.com/i_s3bsfd388w/was-the-movie-alexander-the-great-historically-accurate-and/ https://answers.yahoo.com/question/index?qid=20070520132655AAvGt9v http://www.imdb.com/title/tt0346491/ Books: Jennifer Lawlwss Unlocking the past: Preliminary Studies in the Ancient World (1996) Jennifer Lawlwss Unlocking the past: 2nd Edition Toni Hurley Antiquity textbook Louise Chipley Slavicek Heroes and Villains: Alexander the Great (2005) Michael Wood In the footsteps of Alexander the Great (2001) Laura Foreman – The epic story of the warrior king Alexander the Conqueror Steven Pressfield The Virtues of War: A Novel of Alexander the Great (2004) Paul Anthony Cartledge Alexander the Great (2004) Nicholas Geoffrey Lemprià ¨re Hammond The Genius of Alexander the Great (1997) Michael Alvear Alexander the Great: The Man Who Brought the World to Its Knees (2004)