Considerations for Compensation and Benefits - 1442 Words

Considerations for Compensation and Benefits Abstract Compensation is one of the most important considerations perspective employees will make prior to accepting a job offer. For this reason, another performance of Human Resource (HR) professionals is the compensation analysis. The focus of the analyst in this position is to use strategy in formulating compensation and benefits packages that are attractive and conducive to maintaining talented employees (Editorial Board, 2011). As another critical service of HR experts, this document will explore the types of benefits and compensations companies use to meet certain criteria of employees. This work will also provide insight on the ways in which these packages are designed to attract†¦show more content†¦It is not uncommon for these organizations to base pay grades on knowledge or skills of the employee (Forsyth, 2012). Other approaches to generating the compensation and benefits plan may include a balanced sheet approach, global market approach, or even a tax equalization approach. Independent of these concepts, though, Human Resources professionals follow a particular set of equations for generating compensation (Forsyth, 2012). The following chart reflects the metrics for compensation from the HR perspective: (Forsyth, 2012). Private and Public Sector Packages Another, yet debated, topic that affects compensation and benefits will be the sector of the job. By this, we are looking at private and public sector jobs. Public sector jobs are those which are owned and operated by the government. They may be non-profit organizations. Private sector jobs are those which are provided by citizen-owned, for-profit, organizations. It has been debated for years as to whether public sector employees are compensated more â€Å"fairly† than private sector employees. However, if you consider the unlimited resources of the government-owned organization versus that of the privately owned company, it would seem more understandable as to why this variance exists. While both private and public sectors may have similar policies, or indirect compensations and benefits, they may vary in terms of time. ForShow MoreRelatedComponents Of The Compensation Program1463 Words   |  6 Pagesof expatriate compensation After the preliminary consideration, the basic structure of international compensation programs is similar to the structure of domestic compensation programs (Martocchio, 2015). The main component includes base pay and employee benefits. The nonperformance-based incentive and allowance differ international compensation packages from domestic compensation packages. In the following section, I will focus on the difference part between expatriate compensation and domestic compensationRead MoreEffectively Managing Employee Compensation and Benefit Packages1289 Words   |  6 Pagesfor global organizations and the human resource department, is effectively managing employee compensation and benefits packages. Managing compensation structures has become an integral part of many organizations that conduct operations in the global market, as there are many considerations for the host country when sending expatriates abroad. It is imperative for organizations to develop global compensation st ructures that attract and retain quality employees while not impeding operations or diminishingRead MoreEmployment Agreement : Employee Information852 Words   |  4 Pagesqualifications and abilities necessary to contribute to and continue the endeavors of the Employers business. 3. Both parties accept the terms and conditions described in this agreement. In the consideration of the mutual benefits and responsibilities specified in this agreement, the receipt and sufficiency of which consideration is hereby acknowledged, both parties agree to this agreement as follows: Commencement Date and Term: 4. The Employee will begin full-time employment with the Employer on December 1stRead MoreCompensation Of Memorial Hospital Savannah1075 Words   |  5 PagesCompensation Packages- Memorial Hospital Savannah HR is the one responsible of the development of the organization compensation system and of the development of the pay structures, programs and policies.an effective compensation system will be focused on compelling with the law, cost-effectiveness, provide equity in all aspects and enhancement of the organization (Flynn, 2015). Compensation packages can include bonuses, benefits like health insurance, retirement benefits, paid time off, and professionalRead MoreOrganizational Objectives and Total Compensation in Different Markets613 Words   |  3 Pages Organizational Objectives and Total Compensation in Different Markets University of Phoenix HRM 324 â€Æ' Organizational Objectives and Total Compensation As a human resources consultant, instilling knowledge into organizations regarding laws affecting compensation plan is asked of frequently. BioTeq Industries is no different; it is a biotech company that is in need of help with their compensation plan. BioTeq is a federal contractor with an averageRead MoreThe Globalization Of The World Economy Essay1007 Words   |  5 PagesGLOBAL BENEFITS Introduction The globalization of the World economy has inspired companies to expand abroad to acquire competitive advantage (Longnecker, 2004). In light of this expansion, companies send their employees to foreign countries on assignments. The challenge that comes with this kind of transfer revolves around the employee s willingness to uproot their lives and relocate to a new state (Longnecker, 2004). As a result, companies are now developing attractive compensation packages toRead MoreMaking A Good Compensation Plan1288 Words   |  6 PagesIntroduction: Making a good compensation plan will motivate the managers. Bad compensation plan could influence the company’s development and damage the shareholders’ value (GordonKaswin, 2010,p2). The XXX Ltd want to design a compensation plan which can attract and retain the executives needed to achieve and its objective of establishing an industry-leading company with high operational performance and maintain shareholders’ value. The issues addressed in this compensation plan is how to protect shareholders’Read MoreEssay about Intrinsic Compensation and Discretionary Benefits1167 Words   |  5 PagesCompensation and Benefit Systems Intrinsic Compensation and Discretionary Benefits Intrinsic compensation refers to ability of workers to gain pleasure from their accomplishments of their daily activities. This pleasure acts as their reward or compensation of what they have individually done. This has the effect of making the workers enjoy their tasks. On the other hand, workers sometimes receive rewards on top of their salary or wages. These rewards are not mandatory for one to receive. TheseRead MoreCompensation And Benefits Of Employees921 Words   |  4 Pagesenhance the base compensation and benefits package offered to the employees. The company currently offers a basic compensation program and only federally mandated benefits. Employee surveys suggest the compensation and benefits program may be out of date. Employees are beginning to consider leaving the organization. 1.Propose two (2) methods an HR professional could use to determine incentive pay. Specify the principal manner in which the proposed methods take into consideration individual, groupRead MoreCompensation Practices During The United States And Japan1161 Words   |  5 Pages â€Å"Compensation is known as one of the most complex areas of international human resource management† (Bohlander, Snell, Morris, 2016). For many years there has been a debate on the wages CEO’s in Japan versus those in the United States. It has been reported that CEO’s in Japan make one-sixth of the income of a CEO’s in the United States (Jilani, 2011). This research paper will examine the similarities and differences of compensation practices utilized in the United States and Japan. In order to truly

Gun Control Cons Essay - 1801 Words

Gun Control: Worse For Us Than We Know Almost everyone living in this country should have witnessed such debates. Some people might not have listened to a formal debate, but an informal gun control debate is being carried on by many groups and individuals. It is very unlikely that someone has not listened to one. Recall the occasions when you were traveling or waiting somewhere hearing the neighbors discussing gun control pros and cons. These conversations are also gun control debates in the wider sense of the term. After all, a debate does not have to be a formal one. The question where the gun control debate is heading to come from the fact that there have been innumerable rounds of this debate, but no conclusion seems to have been†¦show more content†¦The statement â€Å"Crime rates will skyrocket if guns are banned because the criminals will do anything to get guns† (ProsCons) is very true in this sense. The gun crime statistics from these countries reveal that after these laws have come into force, th ere has been a steep increase not only in the number of murders but also in the number of suicides. So, how do the pro -gun control groups react to these reports? Unfortunately, they have not been impressed by these facts. Their attitude to gun crime statistics has always been lukewarm. Since the facts are not on their side, they employ other means. The NRA (National rifles Association), for example, has made no secret of its decision to not accept any compromise on the issue of gun control. It has been threatening legislators that it will work for their defeat in the primaries, if they do not toe the line of the NRA. The threat seems to be working, with some legislators making attempts to change the rules in such a way that organizations like the CDC will not be able to study gun violence. One remarkable thing about the gun control debate is that though this debate has been carried on for the past few decades ever since gun control became a serious issue after President Kennedy was gunned down by an assassin, it has been able to sustain the interest of the people. People have listened to many gun control pros and cons but somehow, people engaging inShow MoreRelatedEssay about The Pros and Cons of Gun Control1657 Words   |  7 PagesThis essay will discuss the pros and cons of gun control. Some U.S. States have already adopte d some of these gun control laws. I will be talking about the 2nd amendment, public safety, home safety, and do gun control laws really control guns. I hope after you have read this you will be more educated, and can pick your side of the gun control debate. So keep reading and find out more about the gun control laws that the federal and some state governments want to enforce on U.S. Citizens. FirearmsRead MoreEssay about The Pros and Cons of Gun Control1770 Words   |  8 Pagesimpacts of guns, either positive or negative, during some point of their life. It is because of the fact that guns are a part of numerous American’s lives that we must ask: is gun control needed for the protection of Americans or for the empowerment of the government through the removal of Americans rights. The issue of gun control is not a new topic, their have been numerous other nations who have had this question before them. In 1995, Canada established a new set of gun control laws banningRead MoreThe Pros and Cons of Gun Control in the United States Essay1306 Words   |  6 PagesGun control is a growing issue as of late, due to recent events such as school shootings as well as crimes which are committed daily due to gun violence the issue has been more controversial than ever before. IT is true that by owing a gun you can feel a sense of self- empowerment as it can allow you to protect yourself as well as your loved ones. However, owing a gun is a double edge sword in today’s world. The reason is that with the sudden increase in gun violence more people have beganbegun toRead MoreThe Issue Of Gun Control1573 Words   |  7 Pagesissue being gun control and how guns affect and/or end lives, the even bigger issue though is the issue of how people can or can not write about gun control to educate the public. Gun Control is an issue that needs to be avoided when trying to persuade readers of an opinion for two reasons, the issue of gun control is a terrible essay topic because there are too many emotions involved in gun control debates and because in general there is no good research on gun control. The only essays and articlesRead MoreGun Control859 Words   |  4 PagesScholarly Essay: Gun Control There has been considerable debate recently in Canada over the issue of gun control. The Canadian parliament enacted the Firearms Act to enforce gun control by requiring gun owners to register their firearms. Just recently, the government of Alberta lead in a charge, including five other provinces and numerous pro-gun groups, complaining that the law is unconst... Gun Control Gun control Gun Control Part I:Introduction The issue of gun control and violenceRead MoreAnnotated Bibliography On The Gun Of The Teeth : The Worldwide Plague Of Small Arms1597 Words   |  7 Pagesis one gun for every ten people on earth today. The people who supports gun control believe that if we are trying to save the world, guns for wars should not be shipped around for individual uses. There have been around 400 million deaths due to small arms and conflicts since the fall of the Berlin Wall. Once a person owns a gun, it is very rare that they will be willing to give the gun up. In South Africa, guns have been melted down, blown up, and cut into pieces. If there were stricter gun controlRead MoreWhy Gun Control Is Bad793 Words   |  4 PagesGun Control Argumentative Essay All guns have the potential to be dangerous and should be handled with care. Guns have been part of American life for as long as people can remember. For most people guns are perceived as very dangerous and harmful. However, that is not true; guns can be dangerous, but only if they are in the wrong hands. Owning a gun is right that every American should be able to take pride in having. Guns are used for self-defense, hunting, law enforcement and other uses.Read MoreGun Control Argument798 Words   |  4 PagesGun Control The gun control debate in the US is often contentious and politically divisive. And with upcoming elections always looming in the near future, we will continue hearing a great deal from the media as well as politicians about what should or should not be done about â€Å"too many guns† in our society. Unfortunately, too many Americans do not take time to truly understand the issues and the reasoning behind both sides of the controversy. To help get a clearer perspective of the problem, thereRead MoreGun Control Research Paper 1263 Words   |  6 Pagesï » ¿Modern issues essay Gun control is a controversial issue for a long time around the world, particularly in U.S. because of a lots of mass shooting in school and public places. The second Amendment of the U.S. constitution is one of the shortest in all of the bill of right, it was written by the time period of American’s birth and it is the spirit of self-defense that help the new citizens of U.S. win their own freedom from the British. But now as the gun shooting problem happening every day inRead MoreThe Effects Of Gun Control And The Prevention Of School Violence1402 Words   |  6 Pagesâ€Å"Cap† in Gun Control On April 20, 1999, two teenagers killed 13 people and wounded more than 20 at Columbine High School in Littleton, Colorado (Zirming). The incident drew worldwide attention. It led to widespread discussion over gun control and the prevention of school violence. With unstable characters like this jumping through the ineffective background checks, none are safe. You may think our little village is far from any of this. That’s what the families of victims in Sandy Hook said. Gun control

Strategic Analysis of Australian Market

Question: Discuss about the Strategic Analysis of Australian Market. Answer: Introduction: With the introduction of a newly formed and innovative material to run hand in hand with the thought of sustainable development, Ananas-Anam has stepped into the global market whereby industrial development can be ensured via using the scrap of the agro or natural product. The following report puts light into the new market that has been targeted in Australia. Originating in the United Kingdom, Ananas-Anam has been doing business on the textile and other products that are basically procured and produced from the bio wastes. The report aims at the strategic analysis of Australian market wherethe new product of the company is going to be launched. Pinatex, the latest venture of Ananas- Anam has extensively different quality and entity from the other products marketed by the leading business organisations. Ananas- anam believes in total safety and sustainability of the environment thus notwithstanding the chemical and plastic production in the company. The report strictly focuses on the search of suitability of Australian market. The external environment of the Australian market will also be under consideration of the analysis. The report is written in a PESTEL analytical format whereby the external factors of the company in Australia is going to be assessed. PESTEL analysis stands for political, economic, social, technological, environmental and legal factors that are effective and decisive in determining the success or failure of a company or a product in a market. Background of the Company: Anas-Anam is a textile company that has its business headquarter located in London,UK. The company is the founder and seller of the brand Pinatex a textile product made from the leaf fibres of pineapples. Pinatex is noe fo the most viral products in global textile industry ("ananas anam - New materials for a new world", 2017). The basic reason behind the success of the product is that it has be structured on the priority basis of environmental degradation. Pinatex has a global market of its own. However, the companys market expansion is quite limited and it sees to step onto the major markets in the world (Goswami O'Haire, 2016). Background of the Product: The marketable product of the company is Pinatex that has been developed by the industrious effort of Dr. Carmen Hijosa, the CEO of the company. Invention of Pinatex has been a phenomenal deed as it is based on the natural products without zero ensemble of synthetic items. It is a natural leather alternative that has been designed in order to create a substitute for the synthetic products. In order to ensure sustainable development in manufacturing industry, Dr Hijosa has invented the new textile process that is made by pineapple fibre. Since Dr. Hijosa found during her job in a leather factory that the products made by leather materials are extremely unstable and harmful for the environment, she decided to introduce a new face of textile production. Pinatex is the consequence of her dream and concept. Since Pinatex is not petroleum made synthetic product, it is degradable. It has utilised the pineapple leaves that are wasted in a huge amount every year. After the invention of Pinate x the Dr. Hijoa started campaigning its credibility and responsible uses. This time she focuses on the Australian market. Apart from the pineapple products, the researchers have recently found an alternative way by applying the fibre of cocoa in weaving process. Background of Australian Market: Clothing and textile market in Australia is highly potential for the entrepreneurs where the textile products can be sold and earn huge amount of profits. The scope of creating new market demand r the newly launched product needs detailed study of the market trend as the already existing companies and their products have captured the entire market audiences. The country has vast cohesion of people from different countries thus creating a huge scope for the new entries to look deep into their existing and future demand. Most of the Australians prefer wearing cotton or linen clothes that have brand image. The youths are found to prefer the trendy and cheap clothes and shoes. The preference for the trendy and cheap clothes has blocked the opportunity for the quality products. However, the Australian people are also known as supportive and interactive after the launch of new brands and new companies. External Environment: In order to analyse the market trend for the newly launched products, the market analysts need to comprehend the external market factors of the company in terms of the target country. There are various determining factors such as the legal factor, political factor, economic factor, social factor, technological factor and environmental factor. These factors are all together called PESTEL (Political Economic Social Environmental and Legal). Suitable linkage of those factors between the company and the target market results in successful business. PESTEL Analysis: Political: Political analysis of textile industry in Australia tends to the understanding of governments intervention in terms of industrial development through the implementation of different laws either by facilitating new entries in the already congested market or by creating a bar on front of the innovative ideas of the new entries. In this context it can be said that the companys market analysis will try to find out the positive endeavours of the Australian government in supporting the venture of Pinatex. Political segment in PESTEL constitutes the following aspects: Taxation Policies Employment Facilities and Options Political Stability Government of Australias TCF taxation covers the entire range of textile, clothing and foot-ware industry. The government does not impose high rate of taxes upon the new entries, thus encourage them to invest in the country for the sake of the countrys overall development. In the recent years the government of Austraalia has been utilising the availability of workers in the labour market. However, the rate of employment in TCF sector has been declining at times. In the Financial Year 2012-13 employment in the TCF secotr witnessed certain hike with more than 39000 hiring of the workers indifferent segments (Gnig Khn 2015). It has started going down in the next two financial years. In the FY 2013-14, the total number of employment in TCF industry was 37, 787 that was much lower than the previous year and it continued to go down in the next financial year that is the FY 2015-2016 . In that financial year the total number of employment in the sector came down to 36,000. This declining trend of employment in the TCF sector creates curve in ones forehead pertaining to the investment. Othe government has designed some frame work. The main reason behind the decline was the ageing population in the country. Major part of the Australian population is more than 45 years thus creating a void place in employment segment. This has been a major concern for both the government as well the willing investors (Textiles, Clothing and Footwear (TCF), 2017). Australia is politically stable country. Less conflict among the political parties create greater opportunity for the investors to work peacefully .the recent year has not found any major political violence that might affect business and marketing in Australia. This is the positive aspect of the country in doing business. Economic Factors: The economic factors in PESTEL constitute the capital strength of the country where the company plans to do business. Economic fctors in a country are Economic Stability Economic growth Economic stability: After the great depression of 2008, the country has recovered all the economic strains that has broadened the scope of the foreign companies to show interest in doing business. Most of the market segment have the ability to to buy good quality product in substantial rates. However the burgaining tsctics of the audiences or the customers may affect the preliminary business of the company in the new country. In this case the most influential economic background is the mode of industrialisation. Australia has witnessed certain economic growth after 2008. Since the manufacturing of Pinatex is not labour extensive, it can even enjoy the small number of marketing personnel. Social: The social analysis in PESTEL relates to the public trend in terms of clothes and footwear. Most of the Australian youths opt to wear trendy and fashionable clothes. Hence, the newly elegant clothing can be simply modified according to the social demand. i) Australia is a socially cohesive country and its population is highly diverse in nature. The social approach of the country has vast integration to cultural aspects. Thus there is a scope for the company to venture a new product idea in the Australian market. History has witnessed that the market in Australia is inclined to the fashion products which are qualitatively high. ii) The social trend to the acceptance of the eco-friendly products is going to help the company launch Pinatex. However, there might a problem pertaining to the pricing of the Pinatex products as majority of the population is inclined to purchase the products in cheap rate. Technological Factors: The organisation is fully equipped with modern technologies. The government facility to provide technological assistance is also helpful in the marketing strategy during time consumption. i) Australia has vast technological resources. Most of the business subsidies seem to be enjoying the prevalence and abundance of technological advancement in the country. ii) The fashion industry in Australia is highly equipped with technologies and ICT tools. This is why the organisation might be benefited as the government also encourages the tech factors to grow business in the country. Environmental: Environmental analysis is nothing but the message of sustainability. The product aims at the maintenance of the balance and governments law and legislation on the protection of environment Graphical Presentation of PESTEL Analysis in Australia: Fig1: PESTEL Analysis Source: Created by the Author Conclusion: The strategic market analysis has created a basic idea on Australian market that has to be dealt with in a succinct manner. Product launch of Pinatex needs profound market understanding thus facilitating the entire course. Reference: ananas anam - New materials for a new world. (2017). ananas anam. Retrieved 18 April 2017, from https://www.ananas-anam.com/ Goswami, P., O'Haire, T. (2016). Developments in the use of green (biodegradable), recycled and biopolymer materials in technical nonwovens.Advances in Technical Nonwovens, 97. Grnig, R., Khn, R. (2015). Global Environmental Analysis. InThe Strategy Planning Process(pp. 89-96). Springer Berlin Heidelberg. Hugo, G., SA, A. (2014). The demographic facts of ageing in Australia.available at the website to the DSS website: www. dss. gov. au. Jurevicius, O. (2013). PEST PESTEL Analysis.Strategic Management Insight,13, 2013. McDonald, P. (2016). Ageing in Australia: Population changes and responses.POPULATION AGEING, 65. Productivity Commission. (2013). An ageing Australia: Preparing for the future.Commission research paper overview. Canberra: Media and Publications Productivity Commission. Textiles, Clothing and Footwear (TCF). (2017). Industry.gov.au. Retrieved 18 April 2017, from https://industry.gov.au/industry/IndustrySectors/TextilesClothingandFootwear/Pages/default.aspx

Auditing is challenging in value measurement - MyAssignmenthelp.com

Question: Discuss about the Auditing is challenging in value measurement. Answer: Task 1 Impairment assets associated with commonwealth bank are goodwill, joint ventures and plant and equipment. The goodwill arising from the combinations of business which include intangible assets on balance sheet is impaired. If any indication occurs that the investment is being impaired, then the whole carrying cost of the investment in the joint venture is tested for impairment. In plant and equipment, the company calculates it on fair value based on market valuation independently (Annual report of Commonwealth Bank 2018). For the purpose of impairment testing of plant and equipment the companys revaluations adjustments are shown in the reserves of asset revaluation in the income statement. The realized amount of the reserves of asset revaluation are then transferred to the retained profit account. Other properties remain at a cost which includes direct increasing of the cost of acquisition by subtracting accumulated depreciation and heading towards impairment testing (Lind and Arvidsson, 2014).The goodwill of the company is impaired annually by locating the units from where the cash is being generated. It is done by comparing the recoverable sum from the carrying amount of the goodwill. If the carrying sum is more than impairment testing is conducted by the company. The loss held from the impairment testing of the assets of the company is further recorded in the income statement under the section of total operating expenses. The loss occurred by impairment testing is a reason for the reduction in the net income of the firm (Paugam and Ramond, 2015). This is included in testing for the recoverability by calculating the future undiscounted flow of cash for the assets and then comparing the value with the carrying cost of assets. The applicability of Groups impairment testing needed the relevant use of judgements, assumptions and estimated which are based on past experience and factors that are assessed to be viable and are considered on a continual basis. The provisions are formed on the basis of fair value estimated and are considered as the variation between carrying the value of assets and the future cash flow value reduced at the effective interest rate of the financial assets (Huikku, Mouritsen and Silvola, 2017). The nature of key estimates and assumptions are considered as uncertain as provisions vary. The Group assess that provisions are applied adequately and state the best estimate of expected future costs. The impairment requirement can result in prescriptive as well as subjective to for making considerable judgements. The group must make sure that all requirements are applied in an appropriate manner (Carlin and Finch, 2011). The impairment testing process applicable under the AASB particularly AASB 136 of impairment assets is complex yet prescriptive. Although, there is more subjectivity engaged in the application of these requirements and can create significant impacts due to lack of specific guidance. For example; If or if not impairment in the cash-generating unit is applicable to goodwill or financial asset then it will be based on the goodwill allocation over the cash-generating units of Group (Wen, and Moehrle, 2015). In a situation where goodwill has not been allocated to the unit for the required impairment then it will be subjected to impairment. Thus, the actual outcomes might vary from subjectivity and can impact the net assets and profit of the Group. By considering the present study, I found that this topic is interesting yet complex due to the diversity of applicable provisions. The most interesting aspect of this study was a requirement of impairment testing by considering the viability of information for users. However, the confusing aspect of this study was variation in applicability of provisions of impairment in different situations. The most surprising thing about this study is that the company can use different methods of impairment testing for different types of assets. In accordance with the conducted study, I have gained new insights regarding the conduct of impairment testing done by companies to consider if or if not the goodwill or other assets with their useful lives are impaired. Subsequently, the cash-generating units carrying amounts are evaluated with their recoverable amount (Mazzi, Liberatore and Tsalavoutas, 2016). Further the recoverable amount is identified at their fair value less costing, by applying earnings multiples to the Banking and Wealth Management of Group. Fair value refers to the amount that will be gained to sell an asset or paying for liability transferring on an orderly basis with market applicants on a measurement date (Carlin, Finch and Laili, 2009). Further, the fair value measurement is stated under standards which requires measurement done on fair basis or disclosures about the same. The specified standards are applicable in terms of an exit price with using a fair value hierarchy' and lead to a market-based notion rather than an entity-specified one (Sellhorn and Stier, 2017). The Groups anticipated fair value and fair value hierarchy for the Commonwealth Banks financial aspects were not measured on the basis of fair value as on 30 June 2017. This shows consideration that small-scale firm which is subjected to low scrutiny by management and investors. Along with this, it is noticed that the performance of firm measures as revenue and expected cash flow are low to small firms. However, the medium values of the same for larger firms represent that they are also suffering from poor performance. The fair value must be indicating price estimated at which financial instruments can be sold or transferred by a transaction among market participants. Task 2 In the given study; the head of the IASB has a perception that in past accounting model which was used to record lease transactions were not capable of imitating the exact economic condition of the company. In accordance with the accounting model for lease earlier the company can easily separate the type of lease and was being recorded on the balance sheet. The recent lease accounting does not need operating lease to be recorded in the firms balance sheet and hence the result of this that it do not represent the assets, liabilities and the financial statements of the firm correctly (Haywood, 2018). The rise in the debt for lease in the companies took place because of the misleading information recorded on the balance sheet. The issue is related to the operating lease as in the core content of the current accounting model; it is stated that there are two type of lease financial and operating lease (IFRS, 2018). The financial lease is identified when asset and liabilities are recorded on balance sheet. But the operating lease is identified as the expense of the company and is not recorded on the balance sheet. The companies face problems as writing off the operating lease as it will show less of profitability and liability than it should be. As a consequence, the entity overlooks this unrecorded lease and hence it will result in an lease debt 66 times more than the actual debt. The argument given by the president of the board for most of the aviation industries was that; they would not be able to cope up with the new regulations of the accounting model for lease. The reason behind his argument was that the effects would be on the financial performance of the airline industry. Further; there will be only a little impact on the lessors but their accounting treatment will remain same. The only problem which will arise is the change in the dynamics of the market and also a change in the demand for borrowed aircraft (You, 2017). The coming up of new IFRS standards will have a great impact on the aviation companies which use IFRS as a framework for financial reporting (Lexology, 2018). The companies from now onwards will be needed to identify all type of lease on balance sheet and will also record new assets and liabilities. According to the Chairman of the board, the introduction of new IFRS 16 will affect many companies as it comes up with a single model of accounting which will abolish the differences among the operating and financial lease. The new model will also be applicable to the previous leases, and now all leases will be recorded on the balance sheet of the entity. In the model, the lease will be defined as an identified asset and will have right to control the contract (Carlin and Finch, 2010). The rent expenses will be substitute by the depreciation and cost of interest and entities will need to identify the liability of lease for the present worth of future payments of the lease. The biggest benefits of IFRS16 in lease accounting model is that it will now implement both the lease financial as well as an operating lease on the balance sheet. It will also have an effect on the entitys interest cover; asset turns over, net income, operating profit and cash flows. The company will also experience great impact on the decision-making process, forecasting, and financial reporting. References Annual report of Commonwealth Bank. (2018). (pdf). Available at: https://www.commbank.com.au/content/dam/commbank/about-us/shareholders/pdfs/annual-reports/annual_report_2017_14_aug_2017.pdf [Accessed 25 Jan. 2018]. Bean, A. and Irvine, H., (2015). erivatives disclosure in corporate annual reports: bank analysts' perceptions of usefulness.Accounting and Business Research,45(5), pp.602-619. Cannon, N.H. and Bedard, J.C., (2016).Auditing is challenging fair value measurements: Evidence from the field.The Accounting Review,92(4), pp.81-114. Carlin, T.M. and Finch, N. (2010), Resisting compliance with IFRS goodwill accounting and reporting disclosures evidence from Australia, Journal of Accounting Organizational Change, Vol. 6 No. 2, pp. 260-280. Carlin, T.M. and Finch, N. (2011), Goodwill impairment testing under IFRS: a false impossible shore?, Pacific Accounting Review, Vol. 23 No. 3, pp. 368-392. Carlin, T.M., Finch, N. and Laili, N.H. (2009), Goodwill accounting in Malaysia and the transition to IFRS a compliance assessment of large first year adopters, Journal of Financial Reporting Accounting, Vol. 7 No. 1, pp. 75-104. Haywood, A. (2018).Why Is Global Lease Accounting About to Change?IFRS 16 and FASB ASC 842: Leases. [Online].Available at: https://blog.innervision.co.uk/blog/why-is-global-lease-accounting-about-to-change-ifrs16-and-fasb-asu-842-leases [Accessed 25 Jan. 2018]. Huikku, J., Mouritsen, J. and Silvola, H., (2017). Relative reliability and the recognisable firm: Calculating goodwill impairment value.Accounting, Organizations and Society,56, pp.68-83. Ifrs.org. (2018).IFRS. [Online] Available at: https://www.ifrs.org/news-and-events/2016/03/hans-hoogervorst-article-shining-the-light-on-leases/ [Accessed 25 Jan. 2018]. Kemppainen, S.P., (2015). Goodwill Impairment Testing in Accordance.Accounting Review,27(4), pp.283-310. Lexology.com. (2018).How will the Aviation Industry be affected by IFRS 16? | Lexology. [Online] Available at: https://www.lexology.com/library/detail.aspx?g=22680ff3-ec0f-4557-85d5-520404dd4489 [Accessed 25 Jan. 2018]. Lind, E. and Arvidsson, M., (2014). Indicators of goodwill impairments: Pre-and post-acquisition indicators ability to predict future impairments. Mazzi, F., Liberatore, G. and Tsalavoutas, I., (2016). Insights on CFOs perceptions about impairment testing under IAS 36.Accounting in Europe,13(3), pp.353-379. Paugam, L. and Ramond, O., (2015).Effect of Impairment?Testing Disclosures on the Cost of Equity Capital.Journal of Business Finance Accounting,42(5-6), pp.583-618. Sellhorn, T. and Stier, C., (2017). Fair Value Measurement for Long-Lived Operating Assets: Research Evidence. Wen, H.J. and Moehrle, S.R., (2015). Accounting for goodwill: A literature review and analysis. 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