Posted: February 5th, 2023
Leasing Standard Assignment | Homework For You
1. 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?
2. 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. Note generally financial reports gets released in September so 2018 report may become available).
3. How have these two companies reported their environmental and social aspects such energy use and efficiency, Carbon Emissions etc.? Is there any regulatory requirement for such reporting? If so, summarize the requirements and discuss what they have reported? If there is no regulatory requirement, is there any evidence that these companies have reported/disclosed any environments and social information, if so, summarize how and what is reported/disclosed?
4. Evaluate whether overall, AASB 16 would result in reporting that would be more useful to users of these companies’ financial statements?
5. Summarize your discussion for the Chief Executive Officer (CEO) of the investment company who is from a non-accounting background. Accounting homework help
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