Requirements AASB 16 was released in February 2016 and is applicable to annual reporting periods beginning on or after 1 January 2019. Assume that the Chief Executive Officer (CEO) of an investment company from United Kingdom (UK) had approached you at KPMG seeking advice on the effects of AASB16 on Virgin Australia Group Limited and Qantas Limited financial statements for the period 2017/2018 if these firms adopt the new leasing standard early. You are to assume that all aspects of the financial statement will be same as 2016/2017 except the effect of the AASB 16 KPMG is the Auditors for Virgin Australia Group Limited and Qantas for the financial year 2017/2018. You are required to take the role of business advisor/Analyst for the purpose of providing a detailed report based on the following specific questions relating to AASB 16 that the investing company is seeking report for. As an advisor/Analyst at KPMG, write a report addressing the following questions that the CEO of the investment company has asked your firm for advice a In your report make sure you consider the relevant specific technical and theoretical issues relating to AASB 16 from your nominated stakeholder perspective. You are also required to consider the theoretical implication of accounting information produced from the perspective of your nominated stakeholder 4 How have these two companies reported their environmental and social aspects such energy use and efficiency, carbon emissions, etc.? Is there any regulatory requirement for such reporting? If so, summarise the requirements and discuss what they have reported? If there is no regulatory requirement, is there any evidence that these companies have reported/disclosed any environments and social information, if so, summarise how and what is reported/disclosed? Requirements AASB 16 was released in February 2016 and is applicable to annual reporting periods beginning on or after 1 January 2019. Assume that the Chief Executive Officer (CEO) of an investment company from United Kingdom (UK) had approached you at KPMG seeking advice on the effects of AASB16 on Virgin Australia Group Limited and Qantas Limited financial statements for the period 2017/2018 if these firms adopt the new leasing standard early. You are to assume that all aspects of the financial statement will be same as 2016/2017 except the effect of the AASB 16 KPMG is the Auditors for Virgin Australia Group Limited and Qantas for the financial year 2017/2018. You are required to take the role of business advisor/Analyst for the purpose of providing a detailed report based on the following specific questions relating to AASB 16 that the investing company is seeking report for. As an advisor/Analyst at KPMG, write a report addressing the following questions that the CEO of the investment company has asked your firm for advice a In your report make sure you consider the relevant specific technical and theoretical issues relating to AASB 16 from your nominated stakeholder perspective. You are also required to consider the theoretical implication of accounting information produced from the perspective of your nominated stakeholder 4 How have these two companies reported their environmental and social aspects such energy use and efficiency, carbon emissions, etc.? Is there any regulatory requirement for such reporting? If so, summarise the requirements and discuss what they have reported? If there is no regulatory requirement, is there any evidence that these companies have reported/disclosed any environments and social information, if so, summarise how and what is reported/disclosed
