Essay About Various Elements Of Leases And Us Gaap67.Conclusion88.Reference List99

Gaap Vs. Aasb
S.NO.TOPICPG.NO.1.EXECUTIVE SUMMARY22.INTRODUCTION 23.DIFFERENCE BETWEEN OPERATING AND FINANCE LEASE24.ADVANTAGES OF OPERATING LEASES45.DISADVANTAGES OF FINANCE LEASES56.DIFFERENCE BETWEEN AASB117 AND US GAAP67.CONCLUSION88.REFERENCE LIST99.APPENDICES10Executive SummaryThis report explores the various elements of leases and leasing arrangements with the help of a case study and with reference to Australian Accounting Standards Board (AASB), International Accounting Standards (IAS) and US Generally Acceptable Accounting Principles (GAAP).The first part is concerned with differentiating between an operating lease and a finance lease. In succession to the differentiation between the two, the reasons for the choice of operating leases over financial leases are examined and analyzed, with careful reference to the requirements of AASB117. In addition, the major disadvantages of finance leases are described, again with reference to AASB117 and IAS. The report concludes with a comparison between AASB117 and the US GAAP.IntroductionA lease is an agreement in which the lessee pays the lessor in a series of payments or in a single lump sum payment for the right to use the asset for a decided period of time (AASB117.4, 2009).