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AASB 16 Leases came into effect on 1 January 2019. It replaces the old Standard AASB 117 Leases which allowed organisations to classify leases as
AASB 16 Leases came into effect on 1 January 2019. It replaces the old Standard AASB 117 Leases which allowed organisations to classify leases as being either finance, or operating leases.
Required: Explain why the classification of operating leases under the AASB 117 is inconsistent with the qualitative characteristic of representational faithfulness.
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