Research Based Case Study and Report:
AASB 16 Leases and its impact on the financial position and performance of companies

As a new accounting graduate, you have just joined the financial reporting unit of a company listed on the Australian Stock Exchange (ASX). The Chief Financial Officer (CFO) asks you to assist with the implementation of the new accounting AASB 16 Leases. One of your key objectives is to understand and provide a report of the potential impacts the new standard will have on the company‘s financial statements as the company has significant leasing arrangements. In addition to your own research, he has specifically asked you to review the following press releases as part of your report:

AASB (2016): Long awaited transparency for lease obligations, released on 14 January 2016 (available on http://www.aasb.gov.au/Media-Releases/Long-awaited-transparency-for-lease-obligations?newsID=193312 )

AASB (2016): Leases Project Summary, (available on http://www.aasb.gov.au/admin/file/content102/c3/Leases_Project_Summary.pdf )

Required:
The key areas of the business research report should include:

a. A description of current lease arrangements of the company (must be from the perspective of the lessee). This should include any relevant classifications, a summary of current accounting treatment (i.e. recognition and measurement) and presentation/disclosure in the financial statements in accordance with AASB 117 Leases. (10 marks);

b. A summary of the new rules in accordance with AASB 16 Leases and reasons for changes from the current accounting standard AASB 117 Leases.(10 marks);

c. An analysis of the potential impacts on the company's financial position and performance from the application of the new rules (if the new rules were applied) to current lease contracts as per latest annual report (10 marks); and

d. Recommendations or actions that can be taken by the company to prepare for the application of the new standard. This should be presented in the form of a conclusion. (5 marks).

*You need to select a company which meets ALL of the following criteria

1. is publicly listed on ASX;
2. publishes audited financial reports in English, fully complying with IFRS/IAS or
AASB's and the financial report reviewed is no earlier than 2015 and
3. has material amounts of both finance and operating leases as a lessee.
You are required to follow the detailed instructions on the next page.
Research Based Case Study and Report Instructions
Formal requirements:

Structure: Include your own designed report cover page (including your full name, student number, company selected for review and date of financial report, your Lecturer's name and the day and time of the seminar, attached to the front of your assignment), a table of contents, an executive summary and a list of references. You may include an appendix if necessary.

Length: The minimum total word length of the assignment is 1,200 and the maximum total word length is 1 600 words. Cover page, table of contents and appendices will not be counted in the word count. Please write the number of words used in the assignment after the table of contents.

Font/print: The assignment should be one and a half spaced in ‘Times New Roman' font type and font size 12.

Referencing: You are expected and required to use references to support your report, for example, accounting standards and other reporting guidelines, journal articles and other academic literature if necessary. Any sources of information that you have used must be referenced using the Harvard Referencing System (click to download).