You have graduated with your business degree and recently commenced work with a leading firm of public accountants. A number of very important clients rely on extensive leasing arrangements and have expressed concern regarding proposed changes in accounting for leases. The AASB and IASB are currently working together to develop a new standard for the recognition, measurement and presentation of leases. Requirements While the partners of the firm have been able to communicate with clients about this issue, they have asked you to prepare a background report for presentation to other staff members to outline: a concise history of Australias policy for accounting for leases before the adoption of IFRS; the present approach taken by Australian IFRS on the question of recognition, measurement and presentation of leases, and the reasoning behind this approach; future global developments relating to changing the IASBs current accounting standard for accounting for leases and how they might affect Australian reporting entities