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Accounting, Finance, SPSS
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The impact of asu 2016-02 of a company of your choice Finance Paper

Research Paper Instructions:

Assignment 1: Impact of Financial Accounting Standards Board (FASB) Accounting Standards Update ASU 2016-02 Leases
Due Week 8 and worth 250 points
Accounting is the language of business, and it is not a dead language! The FASB is responsible for ensuring that all relevant and material financial information is properly codified in Generally Accepted Accounting Principles (GAAP).
The use of off balance sheet leases to distort the real liabilities of companies is a topic of long-lived concern. ASU 2016-02, Leases, is the most recent action of FASB to address this issue.
For this assignment you will select a company of your choice or use one (1) of the companies you researched in your weekly discussions to write a six to eight (6-8) page report in which you:
(1) Summarize the impact of ASU 2016-02, Leases on the recording of leases.
(2) Discuss at least three (3) elements featured in the current information reported by your chosen company for its leases.
(3) Analyze the impact of the new standard on the reporting of your chosen company’s leases.
(4) Compare and contrast the impact that ASU 2016-02, Leases will have on the financial ratios of your chosen company.
(5) Determine the impact of the changes to accounting for leases on the recommendations of stock analysts for your chosen company.
Use at least four (4) quality academic resources in this assignment. Note: Wikipedia and other websites do not qualify as academic resources.
Your assignment must follow these formatting requirements:
Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.
Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.
The specific course learning outcomes associated with this assignment are:
Examine accounting principles and concepts used in businesses.
Prepare and record financial transactions in the accounting cycle according to Generally Accepted
Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS) accounting methodology.
Prepare and analyze financial statements including the balance sheet, income statement, and statement of cash flow according to GAAP and IFRS.
Examine inventory costing and valuation according to GAAP and IFRS.
Analyze how GAAP is applied to asset valuation and liabilities.
Determine how to value investments and how to report them based on that valuation.
Analyze the accounting for corporation requirements related to stock valuation, dividends, and retained earnings.
Calculate financial ratios, interpret results, and draw conclusions.
Use technology and information resources to research issues in financial accounting.
Write clearly and concisely about financial accounting using proper writing mechanics.

 

3/14/2020 Week 8 Assignment 1 – ACC557033VA016-1202-001 https://blackboard.strayer.edu/webapps/blackboard/content/listContent.jsp?course_id=_259286_1&content_id=_29909494_1 1/1 Week 8 Assignment 1 - Submit Here 1. Summarize the impact of ASU 2016-02, Leases on the recording of leases. 2. Discuss at least three (3) elements featured in the current information reported by your chosen company for its leases. 3. Analyze the impact of the new standard on the reporting of your chosen company’s leases. 4. Compare and contrast the impact that ASU 2016-02, Leases will have on the financial ratios of your chosen company. 5. Determine the impact of the changes to accounting for leases on the recommendations of stock analysts for your chosen company. 6. Use at least four (4) quality academic resources in this assignment. Note: Wikipedia and other websites do not qualify as academic resources. Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions. Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length. Examine accounting principles and concepts used in businesses. Prepare and record financial transactions in the accounting cycle according to Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS) accounting methodology. Prepare and analyze financial statements including the balance sheet, income statement, and statement of cash flow according to GAAP and IFRS. Examine inventory costing and valuation according to GAAP and IFRS. Analyze how GAAP is applied to asset valuation and liabilities. Determine how to value investments and how to report them based on that valuation. Analyze the accounting for corporation requirements related to stock valuation, dividends, and retained earnings. Calculate financial ratios, interpret results, and draw conclusions. Use technology and information resources to research issues in financial accounting. Write clearly and concisely about financial accounting using proper writing mechanics. Assignment 1: Impact of Financial Accounting Standards Board (FASB) Accounting Standards Update ASU 2016-02 Leases Due Week 8 and worth 250 points Accounting is the language of business, and it is not a dead language! The FASB is responsible for ensuring that all relevant and material financial information is properly codified in Generally Accepted Accounting Principles (GAAP). The use of off balance sheet leases to distort the real liabilities of companies is a topic of long-lived concern. ASU 2016-02, Leases, is the most recent action of FASB to address this issue. For this assignment you will select a company of your choice or use one (1) of the companies you researched in your weekly discussions to write a six to eight (6-8) page report in which you: Your assignment must follow these formatting requirements: The specific course learning outcomes associated with this assignment are: Click here to view the grading rubric. H WEEK 8

Research Paper Sample Content Preview:

Impact of ASU 2016-02, Leases on GlaxoSmithKline
Student’s Name
Professor’s Name
Institutional Affiliation
Date
Before the issue of Accounting Standards Update (ASU) 2016-02 on leases, there were grave concerns over the off-balance-sheet recording of leases. The United States Securities Exchange Commission (SEC) made a response to the concerns by researching the accounting information relating to leases (Sliwoski, 2017). As a result of the study, the commission came up with a report in 2005. The report revealed that over USD 1.25 is defaulted as a future obligation that is not recognized through the balance sheet recording of operating leases (Sliwoski, 2017). The disclosures relating to the operating contracts were, however, verified through the notes to the financial statements (Sliwoski, 2017). This data led to the need for a change in the accounting practices and requirements concerning leases.
The Federal Accounting Standards Board (FASB) is the authoritative body concerned with the formulation of Generally Accepted Accounting Principles (GAAPs) applicable to non-governmental business entities (fasb.org). The body is also relating to the making and communication of the amendments to the codifications. Due to increased concerns and the rising need for the modification of the leases accounting, the board made an update to the accounting standards of leases (fasb.org). This report will discuss the effect of the Accounting Standards Update (ASU) 2016-02, leases on reporting of contracts. The discussion bases on GlaxoSmithKline Plc. We will explore three elements of rentals in the company's financials, the effect of the new standards, and comparison of the company financial ratios related to the update. Lastly, we will look at the impact on the recommendations by stock analysts after the implementation by GlaxoSmithKline.
The FASB issued the ASU 2016-02 leases in February 2016 (fasb.org). The objective of the update was to improve transparency and universality in accounting for leases for organizations (fasb.org). In prior years, the accounting standards required the businesses to list capital leases on the balance sheet. The companies included the operating contracts on the additional notes to the financial report, thus concealing the actual value of the company’s financial obligations (Harm, 2020). ASU 2016-02, leases required all companies that enter into lease contracts to recognize leases as either financial lease or operating leases on the balance sheet (fasb.org). The capital leases became financial leases. The lessees will also recognize assets and liabilities that accrue from the lease contracts (Harm, 2020). The assets and liabilities include the recognition of 'the right-to-use' asset and obligations.
The new standard required the concerned entities to implement the amendments as from the beginning of 2019 (fasb.org). When applied, the new guidelines would significantly influence by providing a faithful representation of leasing operations (Sliwoski, 2017). This is because leases form a significant part of the financial obligations of most large businesses. The change in the standards would be displayed through the increases in the balance sheet expenses and the associated effects on ...
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