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LAGOS STATE UNIVERSITY
OJO, LAGOS STATE.
(EXTERNAL SYSTEM)
AGEGE CAMPUS

ASSIGNMENT IN PARTIAL FULFILLMENT

OF

THE COURSE TITLED: ___________
COURSE CODE: _________
THE DEPARTMENT OF ACCOUNTING
MANAGEMENT SCIENCE FACULTY

BY

AKINWUNMI MODINAT WUNMI
MATRIC NO.: _________________
APRIL, 2013.

ASSIGNMENT SUBMITTED BY AKIWUNMI MODINAT WUNMIContinuation Sheet 1 STATEMENT OF ACCOUNTING STANDARDS (SAS)
Statement Of Financial Accounting Standards are Statements issued by the Financial Accounting Standards Board (FASB).|

Introduction:
I
t is a formal document issued by the Financial Accounting Standards Board (FASB), which details accounting standards and guidance on selected accounting policies set out by the FASB. These statements of financial accounting standards are issued, with the expectation that all reporting companies listed on American stock exchanges will adhere to them. The standards are created to ensure a higher level of corporate transparency. These are the publications of Nigerian Accounting Standards Board (NASB). The following are available: SAS 1 - Disclosure of Accounting Policies

SAS 2 - Information to be disclosed in Financial Statements
SAS 3 - Accounting for Property, Plant and Equipment
SAS 4 - Stocks
SAS 5 - Construction Contracts
SAS 6 - Extraordinary items and Prior Year Adjustments.
SAS 7 - Foreign Currency Conversions and Translations
SAS 8 - Accounting for Employees' Retirement Benefits
SAS 9 - Accounting for Depreciation
SAS 10 - Accounting by Banks and Non-Bank Financial Institutions (Part I) SAS 11 - Leases
SAS 12 - Accounting for Deferred Taxes
SAS 13 - Accounting for Investments
SAS 14 - Accounting in the Petroleum Industry: Upstream Activities SAS 15 - Accounting by Banks and Non-Bank Financial Institutions (Part II) SAS 16 - Accounting for Insurance Business
SAS 17 - Accounting in the Petroleum Industry: Downstream Activities SAS 18 - Statement of Cash Flows

Others are:
ASSIGNMENT SUBMITTED BY AKIWUNMI MODINAT WUNMIContinuation Sheet 2 SAS 19 - Accounting for Taxes
SAS 20 - On Abridged Financial Statements
SAS 21 - On Earnings Per Share
SAS 22 - On Research and Development Costs
SAS 23 - On Provisions, Contingent Liabilities and Contingent Assets SAS 24 - Segment Reporting
SAS 25 - Telecommunications Activities
SAS 26 - Business Combinations
SAS 27 - Consolidated and Separate Financial Statements
SAS 28 - Investments in Associates
SAS 29 - Interests in Joint Ventures
SAS 30 - Interim Financial Reporting
SAS 31 - Intangible Assets

STATEMENT OF ACCOUNTING STANDARDS 11 – LEASE
O
n August 17, 2010, the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) jointly released exposure drafts (ED) of proposed accounting standards that, as currently written, significantly change lease accounting. Under the proposed model, lessees have only one accounting treatment permitted for all leases. Currently, a lessee may treat a lease as an operating lease or a capitalized lease. The only financial statement effect of an operating lease is that the lease payments are reported as rental expense on the income statement. Conversely, a capitalized lease requires that an asset and a liability be recorded on the balance sheet. As a result, most lease agreements are purposefully structured in a way that avoids the capitalized treatment.

The effect of the ED is to remove the treatment option and require that all leases be recorded as capitalized leases by the lessee, thus requiring firms to show all lease liabilities on the balance sheet. PwC and Rotterdam University in the Netherlands studied 3,000 companies worldwide and estimated that the reported interest-bearing debt of these companies will increase on average by 58 percent as a result of the new accounting treatment. This change will dramatically impact financial metrics of energy companies because they lease significant industrial...
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