Assignment 1: Impact of Financial Accounting Standards Board (FASB) Accounting
Standards Update ASU 2016-02 Leases
Due Week 8 and worth 250 points Amazon.com, Inc.
Accounting is the language of business, and it is not a dead language! The FASB is responsible
for ensuring that all relevant and material financial information is properly codified in Generally
Accepted Accounting Principles (GAAP).
The use of off-balance sheet leases to distort the real liabilities of companies is a topic of longlived concern. ASU 2016-02, Leases, is the most recent action of FASB to address this issue.
For this assignment you will select a company of your choice or use one (1) of the companies
you researched in your weekly discussions to write a six to eight (6-8) page report in which
you:
1. Summarize the impact of ASU 2016-02, Leases on the recording of leases.
2. Discuss at least three (3) elements featured in the current information reported by your chosen
company for its leases. Amazon.com, Inc.
3. Analyze the impact of the new standard on the reporting of your chosen company’s leases.
4. Compare and contrast the impact that ASU 2016-02, Leases will have on the financial ratios of
your chosen company.
5. Determine the impact of the changes to accounting for leases on the recommendations of stock
analysts for your chosen company.
6. Use at least four (4) quality academic resources in this assignment. Note: Wikipedia and other
websites do not qualify as academic resources.
Your assignment must follow these formatting requirements:
•
Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all
sides; citations and references must follow APA or school-specific format. Check with your
professor for any additional instructions.
•
Include a cover page containing the title of the assignment, the student’s name, the professor’s
name, the course title, and the date. The cover page and the reference page are not included in
the required assignment page length.
The specific course learning outcomes associated with this assignment are:
•
Examine accounting principles and concepts used in businesses.
•
Prepare and record financial transactions in the accounting cycle according to Generally
Accepted Accounting Principles (GAAP) and International Financial Reporting Standards
(IFRS) accounting methodology.
•
Prepare and analyze financial statements including the balance sheet, income statement, and
statement of cash flow according to GAAP and IFRS.
•
Examine inventory costing and valuation according to GAAP and IFRS.
•
Analyze how GAAP is applied to asset valuation and liabilities.
•
Determine how to value investments and how to report them based on that valuation.
•
Analyze the accounting for corporation requirements related to stock valuation, dividends, and
retained earnings.
•
Calculate financial ratios, interpret results, and draw conclusions.
•
Use technology and information resources to research issues in financial accounting.
•
Write clearly and concisely about financial accounting using proper writing mechanics.
Here is the accounting for leases references for the assignment:
References
Financial Accounting Standards Board (FASB). (2019, November 2019). Emerging Issues Task
Force (EITF) no. 19-B: Revenue recognition—contract modifications of licenses of intellectual
property. FASB. Retrieved
from
https://fasb.org/cs/ContentServer?c=FASBContent_C&cid=1176172644317&d=&pagenam
e=FASB%2FFASBContent_C%2FProjectUpdateExpandPage
FASB. (2020, February). Financial accounting series FASB Accounting Standards Update (ASU)
Financial instruments—credit losses (topic 326) and leases (topic 842). FASB. Retrieved from
https://fasb.org/jsp/FASB/Document_C/DocumentPage?cid=1176174159282&acceptedDisc
laimer=true
FASB. (2017, September). Financial accounting series FASB no. 2017-13 revenue recognition
(topic 605) revenue from contracts with customers (topic 606), leases (topic 840), and leases (topic
842). FASB. Retrieved
from
https://fasb.org/jsp/FASB/Document_C/DocumentPage?cid=1176169363918&acceptedDisc
laimer=true
FASB. (2016, May). Financial accounting series FASB ASU no. 2016-11 revenue recognition
(topic
605)
and
derivatives
and
hedging
(topic
815). FASB. Retrieved
from https://fasb.org/jsp/FASB/Document_C/DocumentPage?cid=1176168115180&accepte
dDisclaimer=true
FASB. (2016, April). FASB ASU no, 2016-10 revenue from contracts with customers (topic
606). FASB. Retrieved
from https://fasb.org/jsp/FASB/Document_C/DocumentPage?cid=1176168066253&accepte
dDisclaimer=true
FASB. (2016, March). Revenue from contracts with customers. FASB. Retrieved from
https://fasb.org/jsp/FASB/Document_C/DocumentPage?cid=1176167987739&acceptedDisc
laimer=true
Grading for this assignment will be based on answer quality, logic / organization of the
paper, and language and writing skills, using the following rubric.
Points: 250
Criteria
1. Summarize the
impact of ASU 201602, Leases on the
recording of leases.
Weight: 15%
Assignment 1: Impact of FASB of ASU 2016-12 Leases
Unacceptable
Below 70% F
Fair
70-79% C
Proficient
80-89% B
Exemplary
90-100% A
Did not submit or
incompletely
summarized the
impact of ASU
2016-02, Leases
on the recording
of leases.
Partially
summarized the
impact of ASU
2016-02, Leases
on the recording
of leases.
Satisfactorily
summarized the
impact of ASU
2016-02, Leases
on the recording
of leases.
Thoroughly
summarized the
impact of ASU
2016-02, Leases
on the recording
of leases.
2. Discuss at least
Did not submit or
three (3) elements
incompletely
featured in the current discussed at least
information reported three (3) elements
by your chosen
featured in the
company for its leases. current
Weight: 20%
information
reported by your
chosen company
for its leases.
Partially discussed Satisfactorily
at least three (3) discussed at least
elements featured three (3) elements
in the current
featured in the
information
current
reported by your information
chosen company reported by your
for its leases.
chosen company
for its leases.
Thoroughly
discussed at least
three (3) elements
featured in the
current
information
reported by your
chosen company
for its leases.
3. Analyze the impact Did not submit or Partially analyzed
of the new standard on incompletely
the impact of the
the reporting of your analyzed the
new standard on
chosen company’s
impact of the new the reporting of
leases.
standard on the
your chosen
Weight: 15%
reporting of your company’s leases.
chosen company’s
leases.
Satisfactorily
Thoroughly
analyzed the
analyzed the
impact of the new impact of the new
standard on the
standard on the
reporting of your reporting of your
chosen company’s chosen company’s
leases.
leases.
4. Compare and
contrast the impact
that ASU 2016-02,
Leases will have on
the financial ratios of
your chosen company.
Weight: 20%
Satisfactorily
compared and
contrasted the
impact that ASU
2016-02, Leases
will have on the
financial ratios of
Did not submit or
incompletely
compared and
contrasted the
impact that ASU
2016-02, Leases
will have on the
financial ratios of
Partially
compared and
contrasted the
impact that ASU
2016-02, Leases
will have on the
financial ratios of
Thoroughly
compared and
contrasted the
impact that ASU
2016-02, Leases
will have on the
financial ratios of
your chosen
company.
your chosen
company.
your chosen
company.
your chosen
company.
5. Determine the
impact of the changes
to accounting for
leases on the
recommendations of
stock analysts for your
chosen company.
Weight: 15%
Did not submit or
incompletely
determined the
impact of the
changes to
accounting for
leases on the
recommendations
of stock analysts
for your chosen
company.
Partially
determined the
impact of the
changes to
accounting for
leases on the
recommendations
of stock analysts
for your chosen
company.
Satisfactorily
determined the
impact of the
changes to
accounting for
leases on the
recommendations
of stock analysts
for your chosen
company.
Thoroughly
determined the
impact of the
changes to
accounting for
leases on the
recommendations
of stock analysts
for your chosen
company.
6. 4 references
Weight: 5%
No references
provided
Does not meet the
required number
of references;
some or all
references poor
quality choices.
Meets number of
required
references; all
references high
quality choices.
Exceeds number
of required
references; all
references high
quality choices.
7. Clarity, writing
mechanics, and
formatting
requirements
Weight: 10%
More than 6 errors 5-6 errors present 3-4 errors present 0-2 errors present
present
1. Summarize the impact of ASUs and EITF on the recording of
leases.
Weight: 35%
2. Analyze the impact of the ASUs and potential impact of EITF on
the reporting of leases.
Weight: 15%
3. Compare and contrast the impact that the ASUs and EITF
regarding Leases will have on financial ratios.
Weight: 20%
4. Determine the impact of the changes to accounting for leases on
the recommendations of stock analysts.
Weight: 15%
5. references
Weight: 5%
6. Clarity, writing mechanics, and formatting requirements
Weight: 10%
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