Changes to AASB 117 Leases and the transition to AASB 16 Leases from 1 January 2019
Part I - Research Based Report (15%)
Due: 5pm Tuesday Week 8 (2/10/2018)
Word limit: 1,300 words
Part II – Video Oral Presentation (5%)
Due: 5pm Monday Week 9 (8/10/2018)
Time limit: 4 minutes
Part I – Research based report (15%)
As a new accounting graduate you have recently joined the accounting department of an ASX listed
company. To complete this assignment, you will need to select a suitable company yourself that meets
the following criteria:
• The company must be a constituent of the S&P/ASX 300 index (www.asx300list.com);
• The company cannot be in the ‘Financial’ sector;
• The company must publish audited annual financial reports in English, fully complying
with IFRS or AASB standards;
• The company must have a 30 June year end.
The Chief Financial Officer (CFO) approaches you with your first task. One of his responsibilities is
to monitor the development of new and revised accounting standards in order to be aware of potential
impacts on the company as early as possible. One of the major issues facing your company is the
changes to AASB 117 Leases and the transition to AASB 16 Leases from 1 January 2019. The CFO
has been researching on this and has studied the press releases issued by AASB in the past regarding
this and has been comparing the changes between the two standards.
Since your company have many leases agreements, he is highly concerned about the impacts the new
accounting standard for leases could have on the company’s financial position and performance.
You have been asked to undertake some research and prepare a report for presentation at the next
board meeting, to be held on 8 November 2018. Your report must address each of the following:
a. a description of leases your company (as the lessee) currently has and how they are
recognised, classified and presented in the latest annual report of your company according
to AASB 117 or IAS 17 and a summary of the new rules according to AASB 16 Leases
or IFRS 16 for the classification, recognition, initial and subsequent measurement, and the
presentation of leases from the perspective of a lessee (10 marks);
b. an analysis of the potential impacts on the company’s financial position and
performance from the application of the new rules (if the new rules were applied) to
current lease contracts as per latest annual report (10 marks);
c. an evaluation of whether AASB 16/IFRS 16 improves financial reporting (you are required
to refer to the Conceptual Framework for the objective of GPFR and qualitative
characteristics of useful financial information) (10 marks); and
d. in the form of a conclusion, recommended actions to best prepare your company and
the financial reporting unit for the new accounting treatment (5 marks).
Assessment of report
The research based report represents 15% of your total mark for ACCG224 and is compulsory. Your
assignment will be marked out of 50 as shown in the Report Marking Rubric on page 6 of this document and
will then be converted to a mark out of 15 percent.
Report submission instructions
Where to submit The written report must be submitted in electronic form using Turnitin (through
iLearn via the ‘Assessment Tasks’ folder). Detailed submission instructions are
provided on iLearn. Please ensure that you are familiar with these instructions and
submit before the deadline in case of technical issues.
A hardcopy submission is not required.
When to submit The deadline for submission is 5pm Tuesday Week 8 (2/10/2018)
No extensions will be granted. There will be a deduction of 10% of the total
available marks made from the total awarded mark for each 24-hour period or part
thereof that the submission is late (for example, 25 hours late in submission – 20%
penalty). This penalty does not apply for cases in which an application for special
consideration is made and approved.
How to submit The report can be submitted either in a PDF or word format.
The filename of your report must be as follows:
ACCG224_XXXXXXXX (where the crosses represent your eight digit SID)
Report Format
Before you start writing your report, it is recommended that you undertake the following (both of these can
be accessed through the ‘Assessment Task’ folder on iLearn):
1. Watch the e-lecture on business report writing
2. Take a look at the sample Business Research Report provided on iLearn.
Structure The report must contain the following (in this order):
• Report cover page
• Table of contents
• Executive summary
• Introduction
• Body
• Conclusion/recommendation
• Reference list
• Appendix
You should include relevant parts of the annual reports that you have used and referred to
in your report. Do NOT attach entire annual reports.
Length Total word count limit = 1,300 words.
Your word count must be included on your cover page.
Included in word count Excluded from word count
• Introduction
• Body
• Conclusion/recommendation
• Report cover page
• Table of contents
• Executive summary
• Reference list
• Appendix
Penalties for exceeding the word limit are as follows:
Word count Penalty
• 1,301 – 1,419 words
• 1,420 – 1,539 words
• 1,540 or more words
• No penalty
• 10% of total marks
• 20% of total marks
Style The report must be presented as follows:
Font: Times New Roman 12 point Spacing: 1.5 times line spacing
Margins: not less than 2.5 cm
Footer Each page must have a footer containing the following:
ACCG224 S2 2018 Your SID Page number
Referencing In text referencing is required for all sources used and a complete list of references must be
provided using the Harvard Referencing System.
A copy of the Harvard Referencing System is available under the ‘Assessment Task’ folder
on iLearn.
Please note that as this is a research assignment it is not appropriate to reference to
textbooks or lecture slides.
Plagiarism All assignments will be manually and electronically checked for plagiarism and it is
extremely important that you are familiar with the policy on Academic Honesty.
A link to the policy is available in the ‘Assessment Task’ folder on iLearn.
S2 2018 ACCG224 Page 5
Part II – Video Oral Presentation (5%)
The CFO was impressed by your report and has asked you to prepare a video presentation to be played
to the Board Committee at the next meeting on 8 November 2018.
Your video presentation should include:
a. a summary of the new rules according to AASB 16/IFRS 16 Leases for the classification,
recognition, initial and subsequent measurement, and the presentation of leases from the
perspective of a lessee;
b. an analysis of the potential impacts on the company’s financial position and performance
from the application of the new rules (if the new rules were applied) to current lease
contracts as per latest annual report; and
c. recommended actions to best prepare your company and the financial reporting unit for the
new accounting treatment.
Assessment of video
The research based report represents 5% of your total mark for ACCG224 and is compulsory. Your
assignment will be marked out of 40 as shown in the Presentation Marking Rubric on page 7 of this document
and will then be converted to a mark out of 5.
Video format and submission instructions will be available later
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