B3. The former IASB chairman Sir David Tweedie once famously bemoaned the fact that he had never flown on a plane that was on the airline's statement of financial position. This is because with IAS 17 (Leases), airlines typically leased their aircrafts rather than buying them and with careful structuring they can keep it off- balance sheet (statement of financial position). After many twists and turns, the IASB finally issued its long-awaited new leasing standard in January 2016 and finally ended a debate that had lasted for a generation. The age-old distinction in international standards between finance leases and operating leases is no more and for the first time almost all leases will appear on the statement of financial position of the lessee (Sleigh-Johnson, 2017). The new standard which is effective for accounting periods beginning on or after 1 January 2019 is intended to improve both comparability and transparency by providing users with a complete and understandable picture of an entity's leasing obligations. Required: Discuss the validity of the above statement, illustrating your answer with examples as appropriate. Your answer should include a critical discussion of the criteria contained in IAS 17 in relation to leases and the need for the new leases standard of IFRS 16. Your answer should include: - 1. Critical discussion of IAS17 and its adequacy in today's complex business transactions and climate. [40 marks] 2. Arguments surrounding the need for change to IFRS 16 and its impact (financial and non-financial) towards companies. You can choose company/companies to illustrate your answer. [60 marks]