Essay topic: Accounting for Leases – the impact of AASB (IFRS) 16 (20 marks) You are required to write an essay to demonstrate your understanding of accounting for leases. With reference to the most recent annual report of a Not for Profit (“NFP”) organisation ( such as Ozcare, St. Vincent de Paul society QLD, UnitingCare, Anglicare, Salvation Army and so on) write an essay which examines accounting for leases, and the major expected changes that will come about with the application of the new leasing standard within the Not for Profit industry. Your essay must include: • Evidence of your understanding of lease arrangements and the impact on financial reports, including a demonstration of operating versus financial leases. • Summarise the NFP you have chosen, including the value of leases as currently listed in the financial reports. • Research on the impact that the accounting rules for leases might have on the NFP you have chosen. • A summary of the short- and long-term impacts of the changes to reporting for leases (e.g. financial statements and gearing ratios). • You should also be able to demonstrate your understanding of lease arrangements for the industry of your NFP and the lifecycle and stage of the lease. ? Please be clear in the determination of accounting by lessor and lessee. ? In addition, given the current economic environment, what do you think are/will be the challenges for NFP entities in relation to lease accounting as per AASB 16?