This report analyzes the impact of AASB 117 and AASB 16 on Telstra's financial reporting. It includes a description of the lease possessed by the company, their classification and presentation in the annual report as per AASB 117 and AASB 16, probable impacts on the financial position and performance of Telstra due to the newly applied rules to the present lease contracts, and recommendations to prepare Telstra for the new accounting treatment.