Position paper Essay Example | Topics and Well Written Essays - 1000 words - 4

Position paper - Essay exerciseThe existing lease report model is inconsistent in nature. Leasing is regarded as the most preferred funding option for the entities or the organizations. The leasing technique adopted in accordance with the existing technique in the prehistoric has caused various problems and differences in presentation of the financial statement of the entity. Therefore in order to overcome the limitations of the accounting timeworn in relation to the leasing, new proposed International Accounting exemplar is formulated or introduced. correspond to the International Accounting Standard 17lease will not distinguish between the operating and the financial leases.The limitations or the challenges advance by the company in applying the accounting standard as per the International Accounting Standard and the FASB affected large number of companies or the industries entering into the lease agreement. In response to the criticism faced by the organization or entity for recognizing the operating and financial lease on the balance sheet of the refer organization or entity, the standards are revised. The existing standard failed to meet the needs and requirement of the users of the financial statement. It fails to fork up a faithful representation of the financial and operating leasing transactions. In order to overcome and face the criticisms the Standards in 2006 initiated a joint project for improvement and development of the financial reporting on the leasing activities of the organization infra the International Accounting Standard Board and the US GAAP (Walton, 2011). The boards have decided to improve the approach for recognizing the asset and liabilities and the obligations created by the lease activities of the entity. The main objective of improvement or introducing revised accounting standard is that the company must be able to recognize the asset and liabilities arising from a lease. This initiative will