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Introduction to IFRS 16 (Leases) [Video]

Introduction to IFRS 16 (Leases)

IFRS 16 establishes the rules for the recognition, measurement, and disclosure of leases for both lessors and lessees.

The IASB issued IFRS 16 in January of 2016 (it replaced IAS 17).

IFRS 16 had a substantial impact on the accounting for lessees because it requires lessees to capitalize all leases (with two exceptions). This means lessees must recognize a right-of-use asset and a lease liability upon commencement of a lease.

The goal of IFRS 16 was to increase transparency in financial reporting. Prior to IFRS 16, lessees could structure leases so that the lease liability didn’t appear on their statement of financial position (aka balance sheet). Thus, leases were used as a means of off-balance sheet financing (to keep debt off a company’s balance sheet).

IFRS 16 affects the the financial statements of lessees in the following ways:
(1) they will report higher total assets and total liabilities than they would have reported under the old accounting rules
(2) expenses will be front-loaded, because more interest expense will be recognized in the early years of the lease when the lease liability is higher
(3) they will report a higher EBITDA than they would have reported under the old accounting rules

Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD.
Edspira’s mission is to make a high-quality business education accessible to all people.

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Resources for Accountants

Tax Planning Strategies for Businesses [Video]

Here’s what it means for a business to engage in good tax planning:Avoid income recognition by generating tax-exempt income.Defer income recognition by postponing the sale of assets, doing a 1031 exchange.Maximize deductions by keeping receipts for business meals, using a portion of your home exclusively for business (home office deduction).Accelerate deductions by using § 179 expensing, bonus depreciation, cost segregation.Maximize tax credits by hiring individuals who face obstacles finding a job (work opportunity tax credit). You can also reduce your effective tax rate by:• Shifting income from high-tax jurisdictions to low-tax jurisdictions • Shifting income from high-bracket taxpayers to low-bracket taxpayers• Shifting income from high-bracket tax years to low-bracket tax years• Converting ordinary income to capital gains• And avoiding double taxation— Edspira is the creation of Michael McLaughlin, an award-winning professor who went from teenage homelessness to a PhD. Edspira’s mission is to make a high-quality business education accessible to all people. — SUBSCRIBE FOR FREE PDF GUIDES TO THE FINANCIAL STATEMENTS, MANAGERIAL ACCOUNTING, TAX, AND MORE* http://eepurl.com/dIaa5z — HIRE MICHAEL MCLAUGHLIN, PHD, CPA* https://michaelmclaughlin.com/hire-me— GET CERTIFIED IN FINANCIAL STATEMENT ANALYSIS, IFRS 16, AND ASSET-LIABILITY MANAGEMENT* https://edspira.thinkific.com—LISTEN TO THE SCHEME PODCAST * Apple Podcasts: https://podcasts.apple.com/us/podcast/scheme/id1522352725* Spotify: https://open.spotify.com/show/4WaNTqVFxISHlgcSWNT1kc* Website: https://www.edspira.com/podcast-2/—GET TAX TIPS ON TIKTOK* https://www.tiktok.com/@prof_mclaughlin—ACCESS INDEX OF VIDEOS* https://www.edspira.com/index—CONNECT WITH EDSPIRA * Facebook: https://www.facebook.com/Edspira* Instagram: https://www.instagram.com/edspiradotcom* LinkedIn: https://www.linkedin.com/company/edspira—CONNECT WITH MICHAEL * Twitter: https://www.twitter.com/Prof_McLaughlin* LinkedIn: https://www.linkedin.com/in/prof-michael-mclaughlin—ABOUT EDSPIRA AND ITS CREATOR* https://www.edspira.com/about/

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CPA Live Webinar: Upskill for a Global Accounting Career with US CPA [Video]

"Enquire Now: https://www.edupristine.com/courses/cpa-course Here's a webinar on US CPA program. Get the complete details about US Certified Public Accountant Program and learn about future opportunities in the field.Contact Us:Toll-Free: 1800 200 5838Email Id: care@edupristine.comWhatsApp: +91 8828-322444Visit us on https://www.edupristine.com/Follow us on:Facebook: https://www.facebook.com/edupristine Instagram: https://www.instagram.com/edupristine_india/ LinkedIn: https://www.linkedin.com/company/edupristine-inc./ Twitter: https://twitter.com/edupristine/ About EduPristine: India's Number #1 Training Provider in Analytics, Accounting, and Finance. EduPristine was founded in 2008 by four industry professionals from MNCs like Standard Chartered, Goldman Sachs, S & P, and Accenture. In a short span, EduPristine became a Premier Finance Training Provider around the world. Over the years the company grew from one vertical to five verticals- Finance, Accounting, and Analytics.EduPristine has built a strong online platform and network of classrooms across India and caters to self-paced learning, online learning, and classroom mode of learning. Today, EduPristine is a name trusted by Fortune 500+ companies, professionals and students across IndiaCenters in India: Mumbai, Pune, Delhi, Hyderabad, Bangalore, and Chennai.Learn more about us: https://bit.ly/about-edupristine Placements: https://bit.ly/placements-services Students Testimonials: https://bit.ly/students-testimonial EduPristine Classrooms: https://bit.ly/edupristine-classroom #cpacourse #cpacoursedetails #cpacoursefees #cpacoursefullform #cpacourseduration #cpacourseinindia #whatiscpacourse #cpacoursesyllabus #cpacourseinmumbai #cpacourseeligibility #cpacourseinchennai #cpacourseinindiaeligibility #cpacoursedetailspdf"

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3 Theories Explaining the Shape of the Yield Curve [Video]

There are three theories to explain the shape of the yield curve. Expectation theory says the long-term yield of a financial instrument is the average of the short-term yields that are expected to occur over the life of the instrument. Thus: • An upward yield curve means investors expect short-term yields to rise in the future • A downward yield curve means investors expect short-term yields to decline in the futureThe yield curve, therefore, changes as investors’ expectations about future short-term yields change. This explains why yields with different maturities tend to move together. Market segmentation theory says that yields for different terms are based on supply and demand. In short, some investors have a preference for financial instruments with a certain maturity, and these preferences determine yields. The downside of market segmentation theory is that it fails to explain why yields with different maturities tend to move together.Liquidity premium theory is a combination of expectations theory and market segmentation theory. According to this theory, the long-term yield is the average of short-term yields throughout the life of the bond plus a liquidity premium that represents the supply and demand for bonds at that term.— Edspira is the creation of Michael McLaughlin, an award-winning professor who went from teenage homelessness to a PhD. Edspira’s mission is to make a high-quality business education accessible to all people. — SUBSCRIBE FOR FREE PDF GUIDES TO THE FINANCIAL STATEMENTS, MANAGERIAL ACCOUNTING, TAX, AND MORE* http://eepurl.com/dIaa5z — HIRE MICHAEL MCLAUGHLIN, PHD, CPA* https://michaelmclaughlin.com/hire-me— GET CERTIFIED IN FINANCIAL STATEMENT ANALYSIS, IFRS 16, AND ASSET-LIABILITY MANAGEMENT* https://edspira.thinkific.com—LISTEN TO THE SCHEME PODCAST * Apple Podcasts: https://podcasts.apple.com/us/podcast/scheme/id1522352725* Spotify: https://open.spotify.com/show/4WaNTqVFxISHlgcSWNT1kc* Website: https://www.edspira.com/podcast-2/—GET TAX TIPS ON TIKTOK* https://www.tiktok.com/@prof_mclaughlin—ACCESS INDEX OF VIDEOS* https://www.edspira.com/index—CONNECT WITH EDSPIRA * Facebook: https://www.facebook.com/Edspira* Instagram: https://www.instagram.com/edspiradotcom* LinkedIn: https://www.linkedin.com/company/edspira—CONNECT WITH MICHAEL * Twitter: https://www.twitter.com/Prof_McLaughlin* LinkedIn: https://www.linkedin.com/in/prof-michael-mclaughlin—ABOUT EDSPIRA AND ITS CREATOR* https://www.edspira.com/about/

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Resources for Accountants

Best Practices for Days Payable Outstanding [Video]

A higher DPO is usually a good thing. By waiting longer to pay its suppliers, a company can put the cash to alternative uses and require less capital to finance inventory. But sometimes a lower DPO is better. By paying suppliers early, a company can get discounts and avoid late fees. The company will also maintain good relationships with suppliers and not be subject to credit restrictions and harsh payment terms. Thus, a company’s goal should be to optimize DPO as a high (or low) DPO isn’t always better. A company can optimize its DPO with:• Better A/P processes• Better recordkeeping• Better payment terms• Better payment timing This video discusses these 4 ways to optimize DPO in more detail.— Edspira is the creation of Michael McLaughlin, an award-winning professor who went from teenage homelessness to a PhD. Edspira’s mission is to make a high-quality business education freely available to the world.— SUBSCRIBE FOR A FREE 53-PAGE GUIDE TO THE FINANCIAL STATEMENTS, PLUS: • A 23-PAGE GUIDE TO MANAGERIAL ACCOUNTING• A 44-PAGE GUIDE TO U.S. TAXATION• A 75-PAGE GUIDE TO FINANCIAL STATEMENT ANALYSIS• MANY MORE FREE PDF GUIDES AND SPREADSHEETS* http://eepurl.com/dIaa5z— SUPPORT EDSPIRA ON PATREON*https://www.patreon.com/prof_mclaughlin— GET CERTIFIED IN FINANCIAL STATEMENT ANALYSIS, IFRS 16, AND ASSET-LIABILITY MANAGEMENT * https://edspira.thinkific.com — LISTEN TO THE SCHEME PODCAST * Apple Podcasts: https://podcasts.apple.com/us/podcast/scheme/id1522352725 * Spotify: https://open.spotify.com/show/4WaNTqVFxISHlgcSWNT1kc * Website: https://www.edspira.com/podcast-2/ — GET TAX TIPS ON TIKTOK * https://www.tiktok.com/@prof_mclaughlin — ACCESS INDEX OF VIDEOS * https://www.edspira.com/index — CONNECT WITH EDSPIRA * Facebook: https://www.facebook.com/Edspira * Instagram: https://www.instagram.com/edspiradotcom * LinkedIn: https://www.linkedin.com/company/edspira — CONNECT WITH MICHAEL * Twitter: https://www.twitter.com/Prof_McLaughlin * LinkedIn: https://www.linkedin.com/in/prof-michael-mclaughlin — ABOUT EDSPIRA AND ITS CREATOR * https://www.edspira.com/about/* https://michaelmclaughlin.com