Consider the lease agreements, which Challenger Ltd has entered as the lessee. As the new lease accounting standard (AASB16) is effective for the first financial year commencing on or after 1 January 2019, your company is probably still applying the previous accounting standard (AASB117). Discuss how the new accounting standard will affect the assets, liabilities, and profit of your company.

ASSETS NON-CURRENT ASSETS Other Financial Assets 5,449 6,102 7.252 7,573 Property. Plant and Equipment (653) Decrease due to redemption of a corporate bond. (321) Decrease due to depreciation expense and fully depreciated assets, partially offset by acquisition of equipment and renovation for new retail stores. N.M. Adoption of SFRS(1) 16 Leases with effect from 1 January 2019. 22.499 Rights-of-use Assets 23,473 Total Non-Current Assets 36,174 13,675 CURRENT ASSETS Inventories 34.491 37,939 (3.448) Decrease as a result of inventory consolidation measures 14,650 77.890 63,240 Cash and Cash Equivalents Trade and Other Receivables 6,722 10.138 (3.416) Decrease mainly due to lower receivables from suppliers and credit card companies. (109) 262 Other Assets Other Financial Assets Total Current Assets 5,351 765 5,460 503 125,219 117.280 7,939 Total Assets 161,393 130.955 30.438 EQUITY AND LIABILITIES EQUITY Share Capital Retained Earnings Other Reserves Total Shareholders' Funds Non-Controlling Interests Total Equity 18.775 84,135 (48) 18.775 73.415 (194) 10.720 (146) 102.862 417 91.996 337 10,866 80 103.279 92,333 10,946 NON-CURRENT LIABILITIES Deferred Tax Liabilities Lease Liabilities 17 17 12,284 N.M. Adoption of SFRS(1) 16 Leases with effect from 1 January 2019. Decrease due to lower membership administration fee. Other Liabilities 2,035 2.759 (724) 14,336 Total Non-Current Liabilities 2.776 11,560 CURRENT LIABILITIES Trade and Other Payables 19,988 21,569 (1.581) Decrease mainly due to lesser purchases and early settlement of trade payables 112 2,067 1.955 Provisions Income Tax Payable 4,167 4,587 (420) Lease Liabilities 11,403 N.M Adoption of SFRS(I) 16 Leases with effect from 1 January 2019. Decrease due to lower membership administration fee. Other Liabilities 6,153 7.735 (1.582) Total Current Liabilities 43.778 35,846 7,932 Total Liabilities 58,114 38,622 19,492 161,393 130.955 Total Equity and Liabilities 30,438