The Differences in Approaches to Solving Problems of Accounting for Leases - Dissertation Example

Leases are very common in the economic turnover of enterprises, organizations, and individuals. Leases are found in the activity of virtually every entity and individual entrepreneur. The lease gives up and takes it all: property and land, vehicles and equipment, and even entire businesses. On the one hand, in the absence of sufficient resources for the purchase of labor organizations take them out. This will save considerable money by directing them into circulation, if the leased property is no longer needed, simply to terminate the contract of lease.

On the other hand, the landlord is not used in the production of the property and is not idle, not transferred to the conservation and rent, resulting in additional income. Such a situation is beneficial to both sides of the transaction. Study of economic relations that arise in various forms of the lease, and based on this improvements in the organization of accounting are becoming especially important. When lease accounting is on International and international standards for financial services companies have many questions.

Is it classified? Who should reflect the assets on its balance sheet - the proprietor or the tenets? How to distribute income and expenses between reporting periods? In this paper, we consider the differences in approaches to solving these problems, which offer IFRS and RAS. (Nagy, A. L. 2005). Often, organizations and businesses rent property from private individuals, and, in most cases, these individuals are employees of the organization. The lease agreement is compensated, and the company must pay the tenant rent the cost, size, and terms of payment, which are determined by the contract.

Enterprise The firm must be legally independent about its () to the owner. The current accounts of the owner and the firm are separate, and the responsibilities for the obligations of each other do not intersect. We recognized this principle, but not emphasized it. In practice, administrators often confuse him and other people. Accounting system effects Effect of IFRS on the accounting systems of developed capitalist countries is less significant. This is mainly because in most industrialized countries have developed their well-established principles and traditions of accounting, which satisfy the specific requirements of the national market models. (Nagy, A. L. 2005). For example, in Western Europe and Japan, the main financial flows and investments of the economy are made through banking institutions, and not through the stock exchanges.

Therefore, a priority, of both legislative and proper accounting regulation is to protect the interests of creditors, rather than meet the information needs of shareholders.