The Business And Accounting Issues Essay - 925 Words

Property rights in long-term assets are generally acquired through purchases funded by either internal resources or funds borrowed form external sources. Nevertheless, a time line of the business and accounting issues are associated with the purchase of long-term assets. And these accounting issues include, in addition to the difficult financial decision, the valuation of the original acquisition cost, determining the amount of expense or periodic write-off, treatment of subsequent expenditures, and recording the disposal of the assets (Stice Stice, 2014) , and have led to leasing as an alternative means to acquire long-term assets to be used by firms. Historical development of Leases Prior to the FASB Statement 13 and IAS 17, the Committee on Accounting Procedure of the American Institute of Accountants issued the Accounting Research Bulletin (ARB) No. 38, Disclosure of Long-Term Leases in Financial Statements of Lessees, which was restated later on in chapter 14 of ARB No. 43 suggested that long-term leases were often nothing more than substitutes for ownership and mortgage borrowing referred to at times, installment purchase of property. As a result, the committee was concerned that companies often failed to record assets and related liabilities on the balance sheet, even though this treatment of long-term leases focused on the omission of both assets and liabilities (IASB, 2007). The concern was more on the liabilities not being reported than it was on the assets,Show MoreRelatedAccounting And Business Issues : Worldcom s Failure891 Words   |  4 PagesSection #3. 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Therefore, it becomes necessary to stress on the ethics and morals that should be prevalent in the business community. The term ethics in the business environment expresses the expected attitude of the individuals in organizations that carry out certain activities and services. Clearly, today’s business environment h as obvious ethical issues that not onlyRead MoreAccounting Software For A Business Essay1257 Words   |  6 PagesIndividual Assignment Name: Altaf Gohar Roll no: EAB2389 Accounting Software/Packages used in Australia Accounting  is referred as an art of collecting, classifying, and manipulating financial data for organizations and individuals.  It  is also used to determine financial stability or financial health of organizations. Accounting is the language of business and figures and is widely used as a means of communication for financial world, without it businesses cannot survive. 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