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An analysis of Responses

from the public accounting


firm to the IASB/FASB
discussion paper on leases
Sarahwenda M a1653356
Ya Wen a1642373
Yongwei Jia a1677914
Outline
Research question
Research design
Analysis of the comment letter from KPMG
Analysis of the comment letter from DELOITTE
Analysis of the comment letter from PWC
Limitation
Conclusion
Reference list
Research question

What are the concerns raised by the public accounting firms in


relation to leases based on discussion paper which published by
IASB?
Reasons of choosing this research question

These accounting firms provide the professional opinions

In accounting firms they have to be familiar with the accounting


standards in order to run their services
Research design

Critical thinking of the DP


Finding relevant comment letters
Reading independently with critical thinking
Do plans before meetings clearly
Set face to face meetings and share ideas online
Analysis of the comment letter from KPMG

Developed fully consideration of both lessees and lessors


lease account is important.
Fear for the Board only consider the new model from lessees
proposed.
Suggest the Board to consider the other projects which may
affect the lease account.
Any changings of the current lease model must bring
advantages of users of financial statement.
Analysis of the comment letter from
DELOITTE
All lease transactions should be accounted for using a single model
Many have expressed concern about significant cost and effort that
will be required to apply the proposed model
Other individuals within the DTT network have significant concerns
about the boards issuing a leasing standard in the short-term that is
neither high-quality nor comprehensive.
These individuals strongly believe that the boards should issue a DP
on lessor accounting prior to issuing an exposure draft on lessee and
lessor accounting.
Analysis of the comment letter from PWC

The board objective to improve the accounting for lease.


In the sample lease, the short-term leases should not use the
whole asset approach.
Board should address the accounting for lessees and lessor in
a comprehensive fashion
Fundamental principles should be aligned to the extent
possible with similar concepts in other projects.
Limitation

Only three comment letters

Accountants, auditors , using the accounting standards.


Comments may be have bias.
Conclusion

Similar general opinions from three public accounting firms


related to discussion paper but reasons and suggestions are
different.
Reference list

Comment letters on DP/2009/1: Leases Preliminary Views, viewed 2 MAY


<http://www.ifrs.org/Current-Projects/IASB-Projects/Leases/DPMar09/Comment-
Letters/Pages/Comment-letters.aspx>
International Accounting Standards Board (IASB) and Financial Accounting
Standards Board (FASB)
DP/2009/1: Leases Preliminary Views, viewed 30/04/2017
<http://www.ifrs.org/Current-Projects/IASB-Projects/Leases/DPMar09/Pages/DP.aspx>