Role of the Police in Community Policing

Role of the Police in Community Policing Abstract Traditionally, law enforcement is called after a crime has already occurred. Law enforcement is designed to respond to emergency calls requiring a quick response, place criminals under arrest, conduct and follow-up on investigations, as well as routine neighborhood checks. When discussing community-oriented policing (COP), there is a broader police focus which is the prevention of crime and disorder. COP requires a more strategic approach to working in the community as the community and the Police are encouraged to come together and form a partnership in which both (community members and police) share a common goal of making the community safer. This paper is going to discuss the role of the police in community policing such as how and why community policing was developed, the role of the COP officer and how the COP officer and community can work together to make COP effective. The Role of the Police in Community Policing The concept of policing has been in existence for many years. The police are expected to perform many community duties that in the past were the responsibility of the local citizen such as: keeping the peace, handling emergency services, dealing with family problems, and helping during civil emergencies. But now police officers are called in to solve these social problems that citizens create. Due to this role conflict, more departments are adopting new models of policing that reflect this changing role. What is community policing? Community policing is a working relationship, between the police and local residents, with the mission to make the neighborhood a safer and better environment to live in and increase trust in the police (http://www.cops.usdoj.gov). By forming this relationship, the community and police work together on goals such as reducing crime in the neighborhood, reducing fear of crime and improving the quality of life in the community. With the cooperation of both the police and the community, community policing identifies problems of crime and chaos and then involve the community in finding solutions to reduce such and make the community and a better, safer neighborhood to live. Community policing goes beyond traditional policing as the police are no longer the sole protectors of the law and social order as all members of the community take an active part in the effort to enhance the safety and quality of neighborhoods. Community policing can be defined as the collaboration between the police and the community (residents) in which together they can identify and solve community issues. Together the residents and the police can encourage active citizen involvement in policing efforts, focus on issues of ongoing public concern, provide continuity of service to the community, develop, strengthen and/or build groups and organizations so residents can advocate for their own interests (www.cops.usdoj.gov). Although, community oriented policing is a partnership between the police and the community members, the police play a major role as the police officer is the foundation of community-oriented policing (Oliver, 2008). The officer’s goal/purpose is to educate the public about its local police department, maintain or increase public confidence and trust in law enforcement, decrease fear of crime, listening to and addressing citizen concerns, and implementing community programs together with community members in an effort to solve problems. Community oriented policing is also intended to encourage community participation and involvement. The values of community policing include developing lasting community partnerships and problem solving in collaboration with the community along with organizational change within the police department. Instead of only riding through the community responding to calls, some police departments have implemented community policing as a more collaborative approach with the community members in an effort to have better problem solving for the police and teach the citizens ways to better prepare, identify and prevent crime and fear of crime in the community. The police can play an active role in the COP by taking the lead in making sure the community safe. It is believed that if the police demonstrate an interest in the community, they will generate a better response from the community response as the citizens will look at the police more as allies rather than enemies. Below are ways that the police can demonstrate their concern for the community while building trust from the community members. In order for COP to be effective the following partnership tactics must work efficiently: Routine Patrol Routine patrol, whether on foot, car, or horseback, should be part of community outreach strategies to increase police visibility in an effort to reduce fear of crime or as a prevention measure for crime-reduction in a particular hot-spot neighborhood. This will also give the opportunity for the community members and officers to become more familiar with each other and also allow the police to have better insight of the community needs regarding crime deterrence. Information Sharing/Ongoing Communication p94 Community policing advocates for a consistent flow of information between law enforcement and the community, regarding potentially effective solutions to crime and disorder problems and various crime trends and patterns. As a result of sharing information, the police can be more proactive and focused on developing long term solutions to the citizen’s concerns rather than be reactive and wait until they are called to determine how to rectify a known problem Crime Prevention Programs The main objective of community crime prevention is to be proactive and bring awareness to community members/groups that may be a potential target for crime as well as open the lines of communication between the police and the community (Oliver, 2008). In most of the community crime prevention programs, the police facilitate the program, however needs the support of the community to support and participate in the programs in order for the program to be effective and successful. Social control The goal of social control is for the police and community to collaborate and work toward maintaining, enhancing, and restoring social control over the entire community. It is thought that if community members have an attachment or are dedicated to making the community a better and safer place, people would less likely commit a crime than those individuals who are lacking in one or more areas. The above programs should be utilized based on the community members’ needs and their perceptions of the local problems (Oliver, 2008). Whether implemented on their own or with the assistance of the police, the above mentioned programs must be created, implemented, and maintained with the assistance and cooperation of the community in order to remain relevant. In conclusion, Community oriented policing is both a philosophy and an organizational strategy that allows police and community residents to work closely together in new ways to solve the problems of crime, fear of crime, physical and social disorders, and neighborhood deterioration. Community-oriented policing is beneficial not only to the community and the police department but also the police officer (Oliver, 2008). References COPS: Community Oriented Policing Services (nd). Community Policing Defined. Retrieved on February 2, 2014 from http:// www.cops.usdoj.gov Oliver, W. (2008). Community-Oriented Policing. A Systemic Approach to Policing (4th Ed). Upper Saddle River, New Jersey

Jones: Accounts Receivable Essay

QUESTION 2 Jones Electrical, though having more rapid growth and expected to increase in future would need more than 250,000 to meet his needs. First of all he has to repay his ex partner after buying him out. Jones bought Dave Verdent, his former business partner out for $250,000. 00. His repayment plan was a $2000.00 per month with 8% interest per annum. The interest rate he is paying is relatively high and this means it will take Jones over ten years to repay this loan with an interest payment in excess of $200,000.00 in interest only. From the financial information provided in the Balance Sheet of Jones Electrical Distribution it shows that there was an increase in accounts receivables, inventory, property and equipment. This increase would permit an increase also in liabilities and equity to be able to finance the assets. On the other hand, the balance sheet also shows in increase in accounts payable, line of credit payable and accrued expenses. The above increases would therefore warrant financial assistance from the Bank for the expansion of the business. With the loan, Jones will be allowed more flexibility in the operations of the business. He will then be able to increase his assets in the form of inventory and capital, which in turn will result in his business being in a better position to finance its operations. In addition, Jones Electrical will be able to benefit from the trade discounts which are offered by his suppliers because this arrangement would allow him to pay his creditors. They need the loan to help the company manage and expand its operations and pay off his debts. QUESTION 3 With respect to the early payment discount of only 2%, it is advisable that the Company, continue to credit its supplies and make alternative arrangements with respect of repayment to its suppliers. The company needs cash and the discount of the 2% does not put the company in a better financial position. It is always important to inject equity so that your company will be able to increase its assets, which will eventually lead to an increase in sales and revenue. Another issue is that with respect to the proposed growth of the company, Jones had predicted forecasting in sales to increase significantly therefore the urgent need for a very large cash flow into the company would help significantly. In 2006 Metropolitan Branch Bank issued a loan of $250,000 to Jones in order to finance its growth in sales. Heavy credit dependency on suppliers will continue to draw request for larger loans and Jones must keep its line of credit at a lower rate to increase cash flows. The risk in issuing a $350,000 loan with a company of Jones size could be decreased in hope of creating a long term relationship. Also, the company has also lowered the Cash Conversion Cycle from 100.12 days (during 2005) to 95.01 days (during 2006). In 2005, days payable outstanding was around ten days and fell under the discount agreement with suppliers. In 2006, the number of days it was taking Jones to repay its suppliers had increased to 24. The nominal cost lost in forgoing the discount was 37.2% of cost of goods sold, or $67,600. QUESTION 4 The line of credit can be lowered also by using a home equity loan in which Mr. Jones home is put up for collateral if he fails to make the payments. The line of credit you receive would be the net worth of your house minus the mortgage amount left on your home, which would be, $199,000 less $117,000 giving you a total of $82,000. When acquiring about a $350,000 loan being able to reduce that price by$82,000 is quite significant. After accepting a large loan of $350,000, the president of Jones Electrical Distribution, is going to have to make cut backs and changes in everyday life Jones Electrical forecasts predicted that its sales would increase with favourable prospects and at the same time the company was in dire need of a significant cash inflow. It is however advisable that Jones Electrical accepts the offer made by Southern Bank and Trust despite the specific restrictions that would be placed on the Company. This offer would provide for long term financing of the company and as a result the limitations with respect to borrowing would eventually be removed, thus enabling the Company to utilize the credit line specifically if it foresees forecast would be favourable. With the increase in bank borrowing, this can contribute to a number of aspects. One main aspect is the increase in sales, which in turn will result in increase revenue. Increase in bank borrowing can result in a decrease in cash flow and this will help them repay the loan. Another area of concern for us is your collections policy. We feel that if you enforced a more strict collections policy that it would improve other areas of your finances. By the looks of it, it appears that the lack of enforcement has deducted your available cash which has forced an inhibiti on of payment during the discount period on your credit line.

Essay on Sir Gawain and the Green Knight as Modern Fantasy

Sir Gawain and the Green Knight as Modern Fantasy nbsp; Sir Gawain and the Green Knight, written by an unknown author in the 14th century, can be called a timeless work of poetry. It exudes a certain fantastic quality that, despite its age of over 500 years, still appeals to modern audiences. Because of this application to all eras, would it be reasonable to state that this poem could be classified with modern fantasy fiction? Because of the similarities in plot and style with so much modern fantasy, Sir Gawain and the Green Knight could be placed in the same category with that genre, though the uses of doing so are questionable. nbsp; In plot, Sir Gawain and the Green Knight has elements which are similar to much modern†¦show more content†¦From when the Green Knight is beheaded and proceeds to pick up his head, give a wicked grin, and say essentially, Ill see you in a year, (ll. 423-456) it is clear that magic will play in integral part in the narrative. The confirmation of enchantment by Morgan le Faye (ll. 2446-2462) finishes the plot as it began it: in a state of magical unreality. Such enchantment is typical of modern fantasy, particularly from writers of modern fairy tales. Indeed, Ellen Datlow and Terri Windling have essentially made their careers editing compilations of these tales, such as the popular Snow White, Blood Red and its several follow-ups. To increase the fairy-tale style feel of the story, the Green Knight is called an elf (ll. 680, 2461) and faery. (l. 240) There is clear indication that this can easily be called a fairy tale. nbsp; Stylistically, the visual and concrete nature of the poem lends itself to modern comparison as well. The delightful accounts of the changing of the seasons are in part to indicate the passage of time, but also add mood to the whole of the piece. Present-day fantasy writer Patricia McKillip has been critically lauded for lush imagery and stories described as atmospheric... and filled with rich imagery. Clearly the descriptions are an important part of the style that makes modernShow MoreRelatedSir Gawain And The Green Knight Essay1541 Words   |  7 PagesLiterature during the medieval period is where magic and the supernatural are constantly present: in otherworldly encounters such as when the knight Lanval meets the lady who becomes his love, in the strange adventures experienced by knights on quests as Sir Gawain does, and in mystical objects such as the green girdle given to Sir Gawain by Lady Bertilak. Without the magic and otherworldly circumstances that exist in these stories, none of them would have been interesting and they probably wouldn’tRead MoreThe Role of Women in Medieval Literature1344 Words   |  5 Pagesï » ¿The assumption of anti-feminism Ã¥ ¤Å¡as become something of an article of faith when interpreting medieval English literature like Sir Gawain and the Green Knight and The Canterbury Tales (Morgan 265). Heng concurs that there are textual assumptions that we now recognize, with the unfair judgment of hindsight, as implicated in a fantasy of textual closure and command, (500). The privilege of hindsight, does, however, offer the opportunity to explore the connections between historical social codesRead MoreAnalysis Of Sir Gawain And The Green Knight1054 Words   |  5 PagesIn his book The Discarded Image C.S. Lewis states that â€Å"the Middle Ages depended predominantly on books†¦reading was one way of the total culture.† To illustrate, imagine a young heroic knight, holding his sword in one hand and his shield in another. Standing in confidence, with a determined look upon his face before confronting his next challenge. Bravery is found in many interesting stories throughout the medieval ages. It is defined by Oxford Dictionaries as â€Å"courageous behavior or character† (OxfordRead MoreCharacteristics Of Medieval Romances2016 Words   |  9 Pagescharacteristics: knights, quests, a lady, magic, romance, Christianity, and of course King Arthur. There is actually much more to these stories than just â€Å"A knight goes on a quest. He meets a lady. And they all live happily ever after.† A reader needs to know what features to look out for in order to know for sure what kind of story he is reading. A Handbook to Literature by William Harmon and C. Hugh Holman says that a medieval romance is a tale of adventure that contains knights, kings, or distraughtRead More J.R.R. Tolkien Essay example1443 Words   |  6 PagesJ.R.R. Tolkien Merely mentioning the name J.R.R. Tolkien conjures up fantasies. Though his trilogy The Lord of the Rings is well known, not much else is known about the man who was a scholar before anything else. It is, in fact, the cult scale popularity of the trilogy that obscures the many accomplishments that marked his life. He won an exhibition, or a middle class merit scholarship, to Oxford University in 1911. By the time he attained his bachelor’s degree, he was conversant in seven languagesRead More J.R.R. Tolkien Essay895 Words   |  4 Pages(1892-1973) gained a reputation during the 1960’s and 1970’s as a cult figure among youths disillusioned with war and the technological age. His continuing popularity evidences his ability to evoke the oppressive realities of modern life while drawing audiences into a fantasy world. John Ronald Reuel was born on the third of January, 1892, at Bloemfontein, South Africa, where his father, Arthur, had taken a position with the Bank of Africa. In 1895 Tolkien’s mother, Mabel Suffield, moved backRead MoreMorgan Le Fay5287 Words   |  22 Pagesthe sacred triad of the Triple Goddess, the essence of the powerful Crone, Warrioress, Seductress. Although She is an elder Goddess, she is still magnificent in appearance - often beautiful but frightening. In many of the tales, such as Sir Gawaine and the Green Knight, she can change her appearance from an ancient hag to a beautiful maiden. Irish Goddess of War and Death In Ireland, She is called Morrighan (or Morrigu), the Goddess of Battles and Death. She is a Queen among the Tuatha de Danaan.Read MoreMedieval Poetry3509 Words   |  15 Pagesof roughly 1,000 years. As a result, it is difficult to make generalizations about medieval literature. It is, nonetheless, possible to identify a few general trends. Allegory and symbolism are common in medieval literature, perhaps more so than in modern writing. Religious and philosophical messages were often conveyed through the use of figures, such as the panther, an animal which represented Christ.  Old Norse  and Irish poetry often contains figures of baffling complexity which allowed listenersRead More C.S. Lewis on Misunderstanding Fantasy Essay4960 Words   |  20 PagesC.S. Lewis on Misunderstanding Fantasy â€Å"Good stories often introduce the marvelous or supernatural and nothing about Story has been so often misunderstood as this.† On Stories—C.S. Lewis The early decades of the last century saw the loss of credibility of fantasy literature among the academic elite who ruled it a popular genre with little to no scholarly merit. Little that had had the misfortune of being dubbed fantasy had escaped the blacklist cast upon the field. Many

Examining the capitalisation of operating leases - Free Essay Example

Sample details Pages: 7 Words: 2230 Downloads: 4 Date added: 2017/06/26 Category Finance Essay Type Argumentative essay Did you like this example? The International Accounting Standards Board is currently proposing that operating leases as well as finance leases are capitalized on the Statements of Financial Position (Balance Sheets) of lessees. This has caused a widespread debate between academics, regulators, the profession and users. Many of the arguments in favour of this treatment are based on the fact that it can be justified in terms of the Framework for the Preparation and Presentation of Financial Statements, but there is no universal agreement with this view. 1.0 Introduction The IAS (International Accounting Standard) 17 prescribes for lessees are lessors the appropriate accounting policies and disclosures to apply in relation to finance and operating leases. The separate treatment of finance and operating leases since 1982 has triggered recent large debate and prompted the initiation of change and improvement. It is beneficial to use the International Accounting Standards Board (IASB) Financial Framework to highlight all crucial points of view in terms of users and highlight that there is no perfect, universal approach. Don’t waste time! Our writers will create an original "Examining the capitalisation of operating leases" essay for you Create order 1.1 Current Accounting Treatment of Leases The International Financial Reporting Standards (IFRS) establish that a finance lease occurs when all of the risks and benefits of ownership are substantially transferred to the lessee (Delaney Whittington, 2010) from the lessor, as well as considering four important conditions; please see Appendix I for details and characteristics. Since the introduction of SSAP 21 the accounting treatment for a finance lease for the lessee is to recognise it as both an asset and liability on the Statements of Financial Position (balance sheet), these are, respectively, representing the lease and the lessor as a creditor to which payments are obliged to be paid. The difference between the minimum lease payments and the present value of the minimum payments is charged to the Statements of Comprehensive Income (income statement) as finance (interest) charges. This mirrors the treatment for the lessor; the lessee is shown as a debtor and the payments of the lease as income. All leases which do not satisfy the finance lease criteria are operating leases. For the lessee, the lease is reported on the income statement as rental income and the future liability of payments are fully disclosed in the footnotes of the financial statements. In contrast, the lessor shows the payments received as rental income in the income statement. Operating leases do not affect the balance sheet for the lessor or lessee. 1.2 The IASB Proposed Change In August 2010 the IASB published a proposal to change the future of leases through the capitalisation of operating leases. It has been estimated by Sir David Tweedie that $640 billion of lease obligations are annually excluded from the balance sheet by being classified as operating leases; this fails to provide users with a true impression of an entitys liabilities and gearing. This is a fundamental change in the transfer of risks and rewards approach by replacing it with the right of use model; the lessee will recognise the asset for their right of use from the lease and the liability for the commitment to maintain payments. (Durocher Fortin, 2010). The Financial Framework The IASB Financial Framework can be utilised to analyse both the accounting standards in place and the proposed changes for both theoretical and practical purposes. It applies essential concepts that underlie both the preparation and presentation of financial statements for external users (Belverd Powers, 2009; IAS, 2010) which evaluates accounting standards as a guide to ensure standards are relevant and reliable. 2.1 The Objectives of Financial Reporting The users of financial accounts are the investors, creditors and other groups and individuals outside and inside the company who must make economic decisions based on these statements (Porter Norton, 2009). The underlying objective of the reports is to provide the users with a true and fair view of the financial position, performance and changes in financial position that is informative in decision making (Benny, 2005). Through capitalising operating leases onto the balance sheet more information will be readily available to lenders; they will be able to evaluate the long-term financial commitments and make superior estimations on the level of risk involved. Lenders will not be able to form reliable, accurate decisions if material the measurement and admission of all information accessible on the financial statements (Schroeder et al, 2010) operating leases are kept off of the balance sheet. Lessees often choose to disclose the operating lease on the income statement to avoid a decrease on their accounting ratios, particularly the gearing ratio which is most vital to investors to show a companys ability to repay their debt. However, this is not recognising all financial assets and liabilities. 2.2. Qualitative Characteristics The IASB have four key characteristics which ascertain the value and use of the financial information for the users, these are; reliability, relevance, comparability and understandability (Elliot Elliot, 2008). 2.2.1 Relevance of Financial Statements The relevance of financial accounts is how competent an entity is at presenting their financial information to aid users form predictions upon the outcome of future events (Clyde et al, 2009). The information is required to be relevant to something depending on the users need or decision; this can include lenders for investment decisions. If operating leases are not capitalised, assets and liabilities may be overstated as well as investor decisions based on the companys liquidity, ability to pay and financial performance will be formed upon limited information. A study carried out by Williams, Chen Tearney (1991) found private business bankers prefer leases to be capitalised onto the balance sheet as they were extensively more relevant and significantly more cost-effective (Durocher Fortin, 2010). 2.2.2 Reliability of Financial Statements Financial statements are deemed to be reliable if they are free from material error, give a true and fair view which is free from bias, is capable of verification and can be depended upon (Cairns, 2002). The IAS 17 states the classification of a lease depends on the substance of the transaction rather than the form, this should be the focal consideration which affects the accounting treatment of leases. The Framework adopts the prudence concept to ensure assets are not overstated and liabilities are not understated, this is a neutral approach under uncertain conditions. Operating leases which are disclosed within the lessees income statement will not be dependable for users of the accounts as it ignores the future liability, forward-looking accounting and the heuristic method (rule of thumb) which exceedingly overstates impending lease liabilities (Imhoff, 1993; Kilpatrick Wilburn, 2006). The capitalisation of all leases will improve the reliability and accuracy of financial ac counts and evaluations made upon these including more realistic ratios. Duke Hsieh (2006) state that operating leases can be used to hide billions of liabilities from investors, report favourable net income and retained earnings, and present a significantly improved debt/equity ratio and a rosier return on assets ratio, this may be due to the bias of the creator or manager of the financial accounts to make them more attractive. This greatly supports the proposed recognition of operating leases with the same treatment as finance leases so all leases, regardless of monetary value, are on the balance sheet to avoid under- or overstating assets and liabilities for the purpose of users decisions. 2.2.3 Comparability of Financial Statements It is valuable for the users of financial statements to be able to compare a companys financial performance and position trends over time and against other entities (Rolfe, 2008). The IASB proposal to capitalise all leases will provide companies with strict rule-based procedures to follow in order to adhere with the standards; this uniformity and consistency across all companies will allow users, such as investors, to compare crucial figures including the gearing ratio and their long term financial commitments to make superior informed decisions. It will also allow managers to compare their financial information with competitors to improve internally. If operating leases continue to be disclosed on the income statement the users are unable to view the material value of individual leases. Supporting this, Berry Robertson (2006) found that bankers feel that incorporating off-balance sheet information into the balance sheet will improve investment evaluations for users and thus, t his will progress the accounting stability across all industries. 2.2.4 Understandability of Financial Statements The business entities are responsible to provide financial statements that are readily available for users who are believed to have sufficient knowledge of business and economic activities and accounting, as well as a willingness and responsibility to study the provided information with a reasonable diligence (Booysen et al, 2008; McCrary, 2009). Financial statements are not prepared for lay users and the business must be aware of their users to make their information valuable and useful. Investors are less likely to pay more attention to operating leases which only feature on the income statement when making investment decisions as they are not fully aware of the lease as a whole. Lessees may not wish to recognise all of their leases onto the balance sheet as it reveals further information which they may not want their competition to be aware of as it increases the risk of their business and it may deter those who are able to critically comprehend the financial information. 2.3 The Elements of Financial Statements The fundamental elements of financial statements are those of asset and liability since each of the other elements are defined in terms of its relationship to an entitys assets or liabilities (Melville, 2008). An asset can be defined as one which provides future economic benefit to the business as well as gaining absolute control over the asset (Epstein Jermakowicz, 2010; Mard et al, 2010); an operating lease satisfies this criterion and therefore should be recognised onto the balance sheet to provide users with a true and fair view of the financial position of an entity. Although this will disrupt the lessees profitability and it is argued by Goodacre (2003) that off-balance sheet operating lease are shown to be a major source of finance and are more important than on-balance sheet long-term debt. Yet, in opposition to Goodacre, an operating lease should be capitalised as it also fulfils the definition of a liability; a present obligation resulting from a past event (IAS 37). Disclosing an operating lease ignores the accrual concept of looking at future financial commitments to maintain the lessees ownership on the lease over a specific period of time. 2.4 Recognition of the Financial Elements A financial element should be recognised onto the balance sheet as soon as the entity has engaged in the contractual provisions of the instrument (Gowthorpe, 2007). An asset must feature on the balance sheet if it complies with three conditions; a past event to acquire the asset, future economic benefits and the entity must have ownership and control. A finance lease certainly fulfils these measures and an operating lease also; the lessee entered into a contract with the lessor to benefit from the use of an asset whilst retaining the control and responsibility for the agreed period. By recognising the lease onto the balance sheet users are able to have an enhanced reflection over the economic benefits of ownership and it allows the entity to manage their balance of assets and liabilities. 2.5 Measurement of Financial Elements The IAS 39 (to be replaced in 2013 with the IFRS 9) details that financial elements should be measured at fair value; the IFRS 7 supplements this rule as entities are to disclose their financial instruments. This enables users to evaluate the impact upon the financial performance and position of the entity; it measures the possible risk exposure, improves transparency and the overall quality of information (Everyingham et al, 2008; Zyla, 2009). The fair value of the leases at the time of commencement is capitalised onto the balance sheet in accordance with the substance over form principle, at present, operating leases do not conform to this (Booysen, 2008). If operating leases are capitalised onto the balance sheet it will adversely affect up to nine major financial ratios, particularly the gearing ratio, which are mainly used by bankers for investment decisions (Beattie et al, 1998). For this reason it is beneficial for entities to disclose these within their income to avoid t horough assessment of risk by users of the financial statements. Oswald (2000) discussed that the introduction of the capitalisation of leases must consider the exchange of cost-benefit between the disclosure and recognition of leases, therefore the increased transparency may initially have detrimental effect on the lessees, yet for long-term finance it will improve consistency and reliability of the financial statements. 3.0 Conclusion It has been confirmed that the current, almost arbitrary, treatment of leases has never been adequate to satisfy both regulators and users of financial statements (Durocher Fortin, 2010; Lyon, 2010). The majority of research has agreed with the IASB proposal to capitalise operating leases to be consistent with finance leases; this will simplify the accounting concept whilst being in accordance with the treatment of financial instruments, and prevent possible accounting schemes to disclose material leases on the income statement. Although, it may significantly affect the financial ratios of specialised industries such as the airline industry that rely on short-term operating leases to rapidly adjust their capacity in relation to demand (Sutton, 2004), the long term benefits will outweigh this. The improved, accurate balance sheet will provide users with greater transparency and further information to aid decision making so it is more reliable and less risky. The IASB is encouraged to adopt the suitable right-of-use model to account for an operating lease on the balance sheet; the marginal administration burden on companies does not overshadow the benefits of comparability and consistency with accounting standards and treatment.