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Evaluate whether overall, AASB 16 would result in reporting that would be more useful to users

Requirements: AASB 16 was released in February 2016 and is applicable to annual reporting periods beginning on or after 1 January 2019. You are required to take one of the stakeholder perspectives listed below for the purpose of providing a detailed report based on the following specific questions relating to AASB 16. Stakeholders: Choose a company in the following GICS sector; - Australian Real Estate Investment Trusts (A-REITs) - Discretionary - Consumer Staples - Energy - Financials - Financials excluding A-REITs - Health Care - Industrials - Information Technology - Materials - Metals and Mining - Telecommunication Services - Utilities From your chosen perspective, write a report addressing the following questions;

1. Why has the leasing standard been changed? What will change? What does it mean for your chosen stakeholder? And how AASB 16 would benefit and/or disadvantage the stakeholder?


2. What effect does AASB 16 have on your chosen stakeholder’s income statement, balance sheet and cash flow statement? What does it mean for users of your chosen stakeholder’s financial statements? (Note: discuss relevant ratios where applicable. Use most recent published financial statement of a company in your chosen GICS sector. Attach as Appendix 1 the financial statements used. Use ratios in the body of your discussion and attach your ratio calculation in appendix 2.)


3. Who should be responsible for reporting (lessee or lessor) on the environmental and social aspects such energy use and efficiency, carbon emissions, etc. of the leased assets and why? For your chosen stakeholder, is there any regulatory requirement for such reporting? If so, summarise how and what is reported? If there is no regulatory requirement, is there any evidence your chosen stakeholder has reported/disclosed any environments and social information, if so, summarise how and what is reported/disclosed?


4. Evaluate whether overall, AASB 16 would result in reporting that would be more useful to users?


5. Summarise your discussion for your Chief Executive Officer (CEO) who is from a nonaccounting background.

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