Assignment Topic:

In May 2018, the Australian Securities and Investments Commission (ASIC) released a media announcement that it would be reviewing more than 200 full year financial reports at 30 June 2018 and selected half-year reports to evaluate the extent to which companies follow the requirement to disclose the future impact of these new accounting
standards. The three major accounting standards being introduced for future financial years (early adoption is permitted) are:

• AASB 9 Financial Instruments (applies from years commencing 1 January 2018);
• AASB 15 Revenue from Contracts with Customers (applies from years
  commencing 1 January 2018); and
• AASB 16 Leases (applies from years commencing 1 January 2019).

Students are required to conduct research and discuss the major changes and potential impacts of these new accounting standards on companies’ financial statements. This assignment is a case study and students must select three Australian publicly companies listed on the ASX and investigate and analyse their 2019 financial reports.
According to these important accounting changes students should discuss the three issues from a practical perspective for the selected companies:

1. Discuss the importance of financial instruments on everyday business activities.
2. Analyse and explain the role of directors and managers (senior managers) in implementing these changes, and their importance in improving firms’ revenues (Net Assets, Profit and other issues).
3. Explain the impact of these changes on lease accounting.