Critically analyse how and why IFRS16 Leases requires lessees to account for leasecontractsand whether or not it has enhanced the usefulness of financial statements.

Assignment Background

:IFRS 16 specifies how to recognise, measure, present and disclose leases. The standard provides a single lessee accounting model, requiring lessees to recognise assets and liabilities for all leases unless the lease term is 12 months or less,or the underlying asset has a low value. IFRS 16 was issued in January 2016 and applies to annual reporting periods beginning on or after 1 January 2019.IFRS 16 replaces the previous standard IAS 17 Leases

Assignment Title:“Critically analyse how and why IFRS16 Leases requires lessees to account for leasecontractsand whether or not it has enhanced the usefulness of financial statements”

In writing this academic essay you should

•Explain how IFRS 16 Leases requires lessees to account for lease contracts.

•Discuss why IFRS 16 Leases was introduced to supersede IAS 17 Leases.

•Critique the impact of the application of IFRS 16 Leases has on the financial statements of lessees.

•With reference to the IASB’s Conceptual Framework for Financial Reporting discuss whether in your view IFRS 16 Leases will enhance the usefulnessof financial statements for the users of the financial statements,or not.ReferencesYou should attach as an appendix the appropriate references for the above essay in Harvard referencing style.

A minimum of 10 referenceswould be considered appropriate –however, it is the quality of your research and not the quantity which is important. If you use Wikipedia/Investopedia/UKessays or similarmarks will be deducted.It is expected that your references will include

•IAS 17 Leases (the old standard) and IFRS 16 Leases (the new standard) and the IASB’s Conceptual Framework for Financial Reporting (revised 2018). •The financial statements of at least one UK quoted company.

•Two commentary or guidance notespublished by a leading accountancy firm

•Two contemporary newspaper articles from theaccountancy press

•Two peer reviewed journals (academic research)Further specific instructions:

•On the front sheet include your SRN and your seminar tutor and time of seminar, but do NOT include your name as marking is anonymous

•On your front sheet you must include the word countfor the essay•Include your student number in a footer on every page

•Include page numbers

•All work must be typed, using double spacing and submitted online

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