Question 3 - Lease Previous leasing standards have been criticized about the lack of information they required to be disclosed on leasing transactions. These concerns were usually expressed by investors and so AASB 16/ IFRS 16 Leases was issued in response to these criticisms. Required: Discuss some of the key changes to financial statements with investors will see when companies apply the lease accounting requirements in AASB 16 / IFRS 16. For a company with significant off-balance sheet leases, discuss the likely impact that AASB 16 / IFRS 16 will have generally on accounting ratios and particularly on: i. ji. Earnings before interest and tax to interest expense (interest cover); Earnings before interest and tax to capital employed (Return on capital employed); Debt to earnings before interest, tax, depreciation and amortisation (EBITDA) iii. (Marks distribution: 2 + 2 + 1 + 1 = 6 marks) (Indicative Wordcount distribution: 80 + 80 + 40 + 40 = 240 words)