Word limit - 3,000 words ± 500 words. Submission Guidelines - All work must be submitted on Blackboard by the due date along with a completed Assignment Cover Page. The assignment must be in MS Word format, no spacing, 12-pt Arial font and 2 cm margins on all four sides of your page with appropriate section headings and page numbers. Reference sources must be cited in the text of the report, and listed appropriately at the end in a reference list using Harvard referencing style. Late submission incurs penalties of five (5) % of the assessment value per calendar day unless an extension and/or special consideration has been granted by the lecturer prior to the assessment deadline.

MARKING RUBRIC - Critical evaluation of the old accounting standard for lease specifically highlighting the drawbacks Demonstration of outstanding knowledge – beyond requirements- on the topic. Extensive relevant research Independent and in-depth analysis; Issues and factors are presented and analyzed in a logical manner; Broad and credible sources of references have been cited using a proper referencing style. Why was the change necessary? Demonstration of outstanding knowledge – beyond requirements- on the topic Extensive relevant research Independent and in-depth analysis; Issues and factors are presented and analyzed in a logical manner; Broad and credible sources of references have been cited using a proper referencing style.

What changes have been incorporated in the new accounting standard for lease AASB 16? Demonstration of outstanding knowledge – beyond requirements- on the topic Extensive relevant research Independent and in-depth analysis; Issues and factors are presented and analyzed in a logical manner; Broad and credible sources of references have been cited using a proper referencing style. How will companies that have significant level of lease financing be affected by the change in the accounting standard for lease? Demonstration of outstanding knowledge – beyond requirements- on the topic. Extensive relevant research. Independent and in-depth analysis; Issues and factors are presented and analyzed in a logical manner; Broad and credible sources of references have been cited using a proper referencing style.

In the former accounting standard for lease (AASB 117) both operating lease and finance lease were allowed, why did companies have a tendency to classify most of the lease contract as operating lease? How does positive accounting theory relate to this behaviour of managers? Demonstration of outstanding knowledge – beyond requirements- on the topic Extensive relevant research Independent and in-depth analysis; Issues and factors are presented and analyzed in a logical manner; Broad and credible sources of references have been cited using a proper referencing style.

According to the IASB, the implementation of AASB 16 is expected to improve comparability between companies that lease assets and companies that borrow to buy assets. Explain this view of the IASB with suitable example. Demonstration of outstanding knowledge – beyond requirements- on the topic Extensive relevant research Independent and in-depth analysis; Issues and factors are presented and analyzed in a logical manner; Broad and credible sources of references have been cited using a proper referencing style.

The implementation of AASB 16 might have an effect on the leasing market if companies decide to buy more assets and as a result, lease fewer assets. Provide possible explanation as to why after the implementation of AASB 16, reporting entities might be more likely to buy more assets and lease fewer assets. Demonstration of outstanding knowledge – beyond requirements- on the topic Extensive relevant research Independent and in-depth analysis; Issues and facts are presented and analyzed in a logical manner; Broad and credible sources of references have been cited using a proper referencing style.

Select the latest (2017 – 2018 financial year) annual report of an ASX listed company. Demonstration of outstanding knowledge – beyond requirements- on the topic. Summarise the key disclosures the company has made on its accounting for leases including on the transitional provision and effect of the transition to AASB 16 from AASB 117. Extensive relevant research Independent and in-depth analysis; Issues and facts are presented and analyzed in a logical manner; Broad and credible sources of references have been cited using a proper referencing style.