This report critically evaluates the old accounting standard for lease (AASB 117) along with highlighting its drawbacks. It includes the changes that have been incorporated in the new standard of accounting for leasing of assets along with affecting the change for this particular accounting standard. The report also discusses the implementation of IFRS 16 that improves comparability for buying of assets along with lease assets. An ASX listed company has been included that includes transitional effect for its overall provision.