Artisan Flowers Inc.: A Framework‐Based Approach to IFRS Leasing Standards

Abstract

Artisan Flowers Inc.'s (AFI) business is centered on importing and selling cut flowers. The company has entered into a number of lease transactions that have the president of AFI perplexed with their accounting treatment and implications. Now, the audit firm needs to explain to AFI's president the appropriate treatment and implications of these lease transactions using current IFRS (IAS 17) and (optionally) the 2013 Lease Exposure Draft. The purpose of this case is for students to gain an understanding and appreciation of the intricacies of IAS 17 as well as the proposed Lease Exposure Draft and the implication of these standards on debt covenants. Students are asked for an explanation of the conceptual basis for the standards and for an analysis of the impact of the standards on AFI's statement of financial position.

Role-Play: desenvolvendo habilidades e competências do Ensino Embasado na Estrutura Conceitual

“…Em consonância com os objetivos do EEEC, tem-se empregado estratégias de ensino como o caso Barrick Gold Corporation (Goeld, 2013), cujo objetivo é trabalhar o conteúdo de goodwill, e o caso da Artisan Flowers (Mactavish & Moore, 2016), cujo objetivo é trabalhar o conteúdo de leasing (IFRS 16). Alinhados ao desenvolvimento do domínio cognitivo da Taxonomia de Bloom, os casos são indicados para utilização no estágio 3 do EEEC.…”