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You are required to write a report to the non-executive directors of a TESCO plc.

21 / 01 / 2019 Others

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Advanced Financial Accounting

You are required to write a report to the non-executive directors of a TESCO plc. The non- executive directors are aware that the IASB is working on a project that is likely to substantially change the accounting treatment for leases, and they are interested to know more about the project and its potential implications for their company’s financial statements.

(b) Discuss the reasons for the IASB developing a new accounting treatment for leases and explain the progress made in respect of the IASB’s leasing project.(*reference wider reading relevant to the IASB leasing project)
(c) Comment on the impact that proposed changes in lease accounting may have on the performance and position of the Tesco Plc


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