Alan Tan is the CEO for an airline company. The company has a large proportion of its aircraft leased from manufacturers under lease agreements that can be cancelled at any time with minimal penalties. At the end of the period starting on 1 January 2019,looking at the statement of financial position prepared by the company accountant, Joyce Maine, Alan noticed a large increase in the total assets and liabilities. Not being aware of any major restructuring activities or investments during the period but having heard about a change in the accounting rules governing leases, Alan asks Joyce to prepare a report describing how the changes in those accounting rules affect the company. As a junior accountant Joyce approaches you to summarise the changes in the treatment of some leases that caused the large increase in the total assets and liabilities. You are required to provide a short description of those changes to Joyce.

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The detailed answer for the above question is provided below REPORT ON CHANGES IN TREATMENT OF LEASE Introduction As a result of the 2019 adoption and implementation of the Financial accounting standa... View the full answer