The implementation of AASB 16 has significantly changed reported results however does not have any economic impact on the company, its cash flows, debt covenants or shareholder value. The impact on transition and going forward is summarised as follows, with a reconciliation between reported results and underlying results excluding the impact of the new standard included on the following pages:

According to the following information, what was the impact on cash flow of the new lease accounting standard AASB 16? Why?

Item	Impact
Profit and Loss	EBIT and EBITDA increase as a result of operating lease expenses being replaced by depreciation and interest, with NPAT decreasing
Balance Sheet	Recognition of Right of Use Asset and Lease Liability. Impact on balance sheet on transition at 1 July 2019: Total Assets increased by $138.4m Total Liabilities increased by $138.4m, comprised of the recognition of lease liabilities of $143.6m, offset by the derecognition of existing lease provisions of $5.2m Net Assets not impacted
Cash Flow	Increase in Operating cash flows offset by an increase in Financing outflows No impact to net cash flow
Adoption Date and Comparatives	AASB 16 has been adopted effective 1 July 2019 The new standard has been applied prospectively and no adjustment made to prior year comparatives