Work

The Uncertainty Associated with the Estimated Lease Term and its Impact on Financial Statements Items

Year: 2014

Type: article

Abstract: The paper focuses on the possibility of reviewing the expected lease term after the initial recognition of the leased subject in the lessee's financial statements. The determination of methodical process and assessment of the possible reassessment of lease term effect on balance sheet items and profit or loss is the main aim of the paper. The authors’ approach is based on the current stage of convergence of U.S. GAAP and IFRS in the area of leases reporting. The possible methodological procedures used in the ED are analyzed for the purpose of consideration and quantification of probability of the option to extend the lease term in case of affected financial statements items. Statistical methods are used for processing.

Source: Procedia Economics and Finance

DOI: 10.1016/s2212-5671(14)00322-0

Authors: Hana Bohušová, Patrik Svoboda, Veronika Blašková

Institution: Mendel University in Brno

Language: English

Topic: Accounting Theory and Financial Reporting

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: diamond

Funder: Grantová Agentura České Republiky

Award: The quantification of the impact of the introduction of Common Consolidated Corporate Tax Base on the budget revenues of the Czech Republic