Question 4 As a major player in the Travel and Leisure industry, Vista Group's transition to applying IFRS 16 is expected to be apparent in their subsequent financial accounts. Their 2018 annual report, prior to the effective date of IFRS 16, confirms that the new standard "will have a significant impact on all parts of the consolidated financial statements and the presentation of the Groups Financial Position, net assets and earnings position". A leading impact is the treatment of operating leases under IAS 17, which were essentially off-balance sheet items. The annual report of Vista Group show that, as of September 2018, the company had operating leases of 2,810.9 million (see below). This value is significant considering that the total equity of the company is 4,333.6 million, while the total non-current provisions and liabilities are 4,390.5 million. Below are extracts on leases from The Annual Report of the Vista Group 2018. Financial commitments from operating lease and rental contracts 30 Sep 2018 Remaining term $ million Up to 1 year 1-5 years 5-10 years More than 10 years Total

Aircraft 383.4 919.4 228.5 15.8 1547.1

Hotel complexes 229.8 353.0 83.0 9.4 675.2

Travel agencies 63.2 120.3 24.0 4.8 212.3

Administrative buildings 40.3 113.9 53.6 36.2 244.0

Ships, Yachts and Motorboats 1.0 NIL NIL NIL 1.0

Other 28.9 43.4 7.3 51.7 131.3

Total 746.6 1,550.0 396.4 117.9 2,810.9