AASB 16 was released in February 2016 and applies to annual reporting periods beginning on or after 1 January 2019. Assume that an investor from Singapore had approached you at KPMG seeking advice on the effects of AASB 16 on South32 Limited and Newcrest Mining Limited financial statements for the period 2020 for these firms' adoption of the new leasing standard compared to the financial period 2019. KPMG is Auditors for South32 Limited, and EY is Auditors Newcrest Mining Limited for the financial year 2020. You are required to take the role of business advisor/Analyst for the purpose of providing a detailed report based on the following specific questions relating to AASB 16 that the investor is seeking a report for. As an advisor/Analyst at KPMG, write a report addressing the following questions that the investor has asked your firm for advice;

1. As the auditor for the financial statements for the year ended 2020 for South32 Limited, are there regulation, restrictions or disclosure requirements etc. that has implications for your firm if you provide the requested advice. If so, please discuss the requirement and how you would resolve it.

2. What are the changes and costs relating to the implementation and ongoing cost for these mining companies relating to the requirements of AASB 16?