According to the 2019 AASB Conceptual Framework for Financial Reporting, the objective of general-purpose financial reporting is to provide financial information about the reporting entity that is useful to existing and potential investors, lenders and other creditors in making decisions relating to providing resources to the entity.

Financial information is considered to be useful if it is relevant and faithfully represented for the users to make informed decisions. As a new accounting graduate, you have just joined the financial reporting unit of a listed company* when your manager, the Chief Financial Officer (CFO), approaches you with your first task.

Your company's board members are concerned about the company's reputational standing in the market relating to the quality of financial information in the annual report and keen to ensure that assets and liabilities are appropriately reflected and disclosed in the company's latest annual report. Therefore, the Board decided to have a review of the relevant accounting treatments and disclosures about leases in the company's latest annual report. Required: Based on the Board's decision, the CFO asks you to draft a business research report addressed to the Board of Directors on the following:

a. Discuss the current lease arrangements of the company (must be from the perspective of the lessee) for the year ended 30 June 2022. This should include any relevant classifications, a summary of current accounting treatment (i.e. recognition and measurement) and presentation/disclosure in the financial statements in accordance with AASB 16 Leases.

b. Analyse the potential impacts on the company's financial position and performance for the year ended 30 June 2022 if your company simply recorded lease payments as rent expense, that is, a debit to expense and a credit to cash. This section requires you to demonstrate your critical thinking skills by evaluating the consequences of different accounting treatments. The analysis should be clear, coherent and supported by relevant examples.

c. Reflect on two concepts or skills you learned which you believe have had a significant impact on your professional growth. You must explain how you applied these concepts/skills to complete this task. This section requires you to demonstrate your ability to apply theoretical knowledge to practical scenarios.

You need to attach a copy of the relevant parts of the annual report showing Leases disclosures and measurements made by the company.

Do not attach the entire annual report.

To complete this assignment, you will need to select a suitable company yourself that meets the following criteria:

The company must be a constituent of the S&P/ASX 300 index (www.asx300list.com);

The company must publish audited annual financial reports in English, fully complying with AASB (not NZASB or accounting standards in other countries) or IFRS standards;

The company must have a 30 June year end.

Choose the annual report for the financial year ended 30 June 2022.