Impact of New Lease Standard AASB 16 on Beam Telecommunications Holding

Running head: ADVANCED FINANCIAL ACCOUNTING
Advanced financial accounting
Name of the Student
Name of the University
Author Note

ADVANCED FINANCIAL ACCOUNTING
Executive summary:
The report is prepared to critically evaluate the introduction of new lease standard and the
prerequisites taken by the reporting entity prior to the implementation. The new lease
standard 16 would come into effect and this would replace the existing lease standard that is
AASB 117. Changes brought due to the introduction of new lease standard has been
accounted by referring to the annual report of the company Beam Telecommunications
limited. The effect of the transition from old to new lease standard has been evaluated by
summarizing the key disclosures made by the company on its lese accounting. In addition to
this, report also outlines the changes that will come into effect after the implementation of the
new lease standard and how such changes would impact the performance of organization.

ADVANCED FINANCIAL ACCOUNTING
Table of Contents
Introduction:...............................................................................................................................3
Discussion:.................................................................................................................................3
Identification and description of the concept of accounting used by Beam Communications
Holding:......................................................................................................................................3
Identifying the changes incorporated in the new lease standard AASB 16:..............................3
Identifying the key disclosures made by the company on the lease accounting and the effect
of transition from AASB 117 to AASB 16:...............................................................................3
Conclusion:................................................................................................................................3
Reference list:.............................................................................................................................4

ADVANCED FINANCIAL ACCOUNTING
Introduction:
The paper is prepared to evaluate the introduction of new accounting standard for
lease and the impact of the transition of the lease standard on the reporting entity. All the
changes that have been incorporated in the new accounting standard for lease has also been
outlined in the report. For the analysis of the introduction of new leased standard and the
impact and accounting treatment changes on the organization has been done by taking the
examples from one of the companies listed on the Australian stock exchange. The chosen
company for identifying the change in the accounting treatment of lease after the introduction
of new lease standard is Beam Communication Holding. Beam communication holding is the
leading company operating in the telecommunication industry and specializes in the
development, design, distribution and manufacture of wide range of cellular and satellite
terminals and accessories (beamcommunications.com 2019). The impact created by
transformation of the accounting lease standard has been explained by referring examples
from the company. In addition to this, the accounting concepts used by the company has been
also illustrated in the report.
Discussion:
Identification and description of the concept of accounting used by Beam
Communications Holding:
All the amended and the new accounting standards and its interpretation that are
issued by AASB and are mandatory for the current accounting period has been adopted by
the consolidated entity. There has been a consistent application of all the relevant accounting
polices while preparing the financial report. The general purpose financial statements of the
company is prepared by adhering to the interpretations and Australian accounting standards