QUESTIONS:

• 1.Briefly illustrate (max 10 lines) how lease accounting is changing for the lessee with the introduction of AASB 16 Leases, which is replacing AASB 117 Leases from 1 January 2019.
• 2.List and illustrate at least 2 prospective benefits for the actual and potential investors (shareholders) coming from the new lease accounting standard (AASB 16 Leases).
• 3.Discuss whether the old lease accounting standard (AASB 117) is to blame for, or has contributed to, some companies failures during the financial crisis (i.e. Border in Australia)?
• 4.According to the documents, it is said that several implications may arise from the introduction of the new leasing accounting standard. Identify at least 1 accounting implication and 1 social implication arising from the new accounting standard and justify your answer.
• 5.With respect to Virgin Australia Airlines Annual report 2015, can you identify the nature of the changes in Virgin Australias liabilities under the new standard?