CRTP Coursework Assignment Accounting for Leases Exposure Draft (ED/2013/6) Submission date: 20 January 2014 by 2:00 pm 1

PART A Briefly explain the proposed changes under the Exposure Draft ED/2013/6 Leases with appropriate and short examples. 2

Introduction Briefly indicate the aim of the exposure draft. Briefly explain the reporting principles of leases in the exposure draft. 3

The proposed changes Right of use model: recognition of asset and liability for all leases that are more than 12 months Dual approach: Type A (most equipment and vehicle leases) and Type B (most property leases) Classification of leases Lessee accounting model Lessor accounting model 4

Important points Clearly focus on the proposed principles in your explanations. Supplement your explanations with short examples Define and cover the reasons – Why the proposed amendments are made, – What the problems were that the new requirements are proposed. 5

PART B Critically evaluate the impacts of the proposals on the financial statements of the group company. 6

General points Examine the IASB’s rationale for the proposed principles with reference to the exposure draft. Investigate alternative points of view from different users. Critically evaluate the potential impact of the proposed principles discussed in PART A on the financial statements of the group. 7

Well evaluation of alternative views Identify a wide range of other people’s opinions, arguments and conclusion Provide well evaluation of the evidence for alternative points of view from different user groups Weigh up opposing arguments Establish good connections between different ideas, opinions or other arguments 8

Depth and breadth of reasoning Account for why this happens, why it works or fails, why it is rational or irrational, why something is useful or useless; or good or poor. Do not merely list good or poor points; Use short examples providing good support for arguments; Draw conclusions about whether arguments are valid or justifiable based on good evidence and sensible assumptions. 9

Other aspects Relevance Logical flow Good use of information sources Predominately analytical rather than descriptive NO ‘cut & paste’ !!! NO repetition !!! 10

PART C Critically evaluate whether the proposals reduce complexity, and improve comparability and transparency in practice, in particular for investors and creditors. 11

General points Clearly discuss clearly how and why the proposed amendments would reduce complexity and improve consistency and transparency in practice, in particular for investors and analysts. Use short examples Provide good support for arguments, opinions, ideas with valid evidence in a logical manner Justify ideas/opinions Make good connections with relevant sources (the IASB Framework, reliable articles, news, comment letters, etc.) 12

Finally Online submission: Online submission deadline 20 th January :00 pm. Be very careful about this, do not leave things to the last minute. You should submit in Microsoft Word format. Word count policy: According to the new amended UWE word count policy there will be no more penalty when you exceed the 2,000 word limit. However we will stop reading your assignment at the 2,000 th word and will not mark the remainder of your assignment. For details please see: 13