AASB 16 was released in February 2016 and is applicable to annual reporting periods beginning on or after 1 January 2019. Assume that the Chief Executive Officer (CEO) of an investment company from China had approached you at EY seeking advice on the effects of AASB16 on Bluescope Steel Limited and Boral Limited financial statements for the period 2018 if these firms adopt the new leasing standard early. You are to assume that all aspects of the financial statement will be same as 2017 except the effect of the AASB 16. EY is the Auditor for Bluescope Steel Limited for the financial year 2018. 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 investing company is seeking a report for. As an advisor/Analyst at EY, write a report addressing the following questions that the CEO of the investment company has asked your firm for advice;

What effect does AASB 16 has on Bluescope Steel and Borals income statement, balance sheet and cash flow statement?