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 States of America (USA) had approached you at KPMG seeking advice on the effects of AASB16 on BHP Billiton Limited and Rio Tinto Limited financial statements for the period 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 2017 except the effect of the AASB 16. KPMG is the Auditor for BHP Billiton Limited for the financial year 2017. 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 a 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; 1. As an Auditor for BHP for 2017 financial year are there regulation, restrictions or disclosure requirements etc. that has implications for your firm if you provide the requested advice. If so, please discuss the requirement and how you would resolve it. 2. Why has the leasing standard been changed? What will change? What does it mean for BHP and Rio Tinto? And how AASB 16 would benefit and/ or disadvantage the BHP and Rio Tinto? 3. What effect does AASB 16 has on BHP and Rio Tinto's income statement, balance sheet and cash flow statement? What does it mean for users of BHP and Rio Tinto's financial statements? (Note: Compare and discuss relevant ratios where applicable. Use 2017 Annual Report for both BHP and Rio Tinto for comparison. Attach as Appendix 1 extract from the financial statements that you have used. Compare and discuss ratios in the body of your discussion and attach your ratio calculations including any formula for both companies in appendix 2.)