Describe the Major Differences That Exist in the Purpose of Accounting

question 33

Essay

Describe the major differences that exist in the purpose of accounting and reporting and in the types of reports of a large city when compared to a large public company.

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Definitions:

IFRS 16

International Financial Reporting Standard that specifies how leases are recognized, measured, presented, and disclosed in financial statements.

Underlying Asset

An asset on which a derivative's price is based, determining its value and performance.

Operating Lease Arrangement

A contract that allows for the use of an asset but does not transfer ownership rights of the asset to the lessee.

Lease Income

Income generated from leasing out assets or property to another party under a lease agreement.