IAS 17 and Project management: Difference between pages

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imported>Doug Williamson
(Added the new IFRS 16 standard on Leases to See also. Not clear at this point whether IFRS 16 is replacing IAS 17)
 
imported>Doug Williamson
(Add link.)
 
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International Accounting Standard 17, dealing with leases.
''Business skills - planning and projects.''


IAS 17 requires finance lease liabilities to be accounted for 'on balance sheet'.
Project management is the discipline and skill of designing and implementing significant projects.


It also requires the appropriate allocation of the total lease instalments between finance charges and reduction of the outstanding lease liability.
Especially when using a recognised project management structure such as PRINCE2, agile or waterfall methodologies.
 
 
 
Under IAS 17 the total finance charge should be spread in such a way as to produce a constant periodic rate of interest on the remaining balance of the liability.
 
However, IAS 17 also allows for some form of approximation to be used to simplify the calculation.
 
Fully accurate calculation bases for spreading the total finance charge include the Actuarial method.
 
The Sum of the digits method is simpler to apply, and will normally produce a close approximation.
 
 
 
=== Future developments ===
 
Differences in accounting standards can lead to significant non-comparability. A joint IASB-FASB project is seeking to improve and align accounting for leases by developing an approach that is more consistent with other definitions of assets and liabilities.
 
The project would result in a replacement of IAS 17.




== See also ==
== See also ==
* [[Actuarial method]]
* [[Adverse selection]]
* [[FASB]]
* [[Agile]]
* [[Finance charge]]
* [[Association for Project Management]]
* [[Finance lease]]
* [[Business skills]]
* [[IASB]]
* [[Gantt chart]]
* [[International Financial Reporting Standards]]
* [[Infrastructure and Projects Authority]]
* [[Off-balance sheet finance]]
* [[Planning and projects]]
* [[Operating lease]]
* [[PRINCE2]]
* [[SSAP 21]]
* [[Project analysis]]
* [[Sum of the digits]]
* [[Project Management Institute]] (PMI)
* [[IFRS 16]]
* [[Safety margin]]
* [[Waterfall methodology]]


[[Category:Accounting,_tax_and_regulation]]
[[Category:Commercial_drive_and_organisation]]
[[Category:Influencing]]
[[Category:Self_management_and_accountability]]
[[Category:Working_effectively_with_others]]
[[Category:Knowledge_and_information_management]]
[[Category:Planning_and_projects]]

Revision as of 11:30, 30 June 2022

Business skills - planning and projects.

Project management is the discipline and skill of designing and implementing significant projects.

Especially when using a recognised project management structure such as PRINCE2, agile or waterfall methodologies.


See also

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