Discuss at least two advantages that were availablefor reporting entities in the previous Accounting...

Question

Discuss at least two advantages that were availablefor reporting entities in the previous Accounting Standard for leases AASB 117 Leases. Further, discuss if reporting entities might be more likely to buy rather than lease assets now that they are required to capitalise leases in accordance with AASB 16 Leases. Justify your answer.

Robert · Accepted Answer

Solution-
The two important advantages regarding the reporting entities in the previous standard of accounting for leases AASB 117 Leases are as follows-
1. If we are reporting the lease than it was less complex and less expensive, this is the comparative study of the new accounting leases standards. 
2. In terms of the leverage there was a true picture comes of the business.

Discuss at least two advantages that were availablefor reporting entities in the previous Accounting Standard for leases AASB 117 Leases . Further, discuss if reporting entities might be more likely...

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