Impact of New Lease Standard on Australis Oil and Gas Limited

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

ADVANCED FINANCIAL ACCOUNTING
Executive summary:
The paper is developed to assess the impact of the new lease standard on the operation and
performance of the oil and gas limited company. The information and the changes that are
incorporated in the new standard of lease is also accounted by gaining an understating of the
changed lease standard. For this, a thorough analysis of the company named Australis Oil and
gas limited has been done by addressing different concepts of accounting used by the
company and how the adoption of the new standard would impact the process and the
operations. Such analysis has been done by summarizing the key disclosures made by the
company regarding the accounting treatment of leases.

ADVANCED FINANCIAL ACCOUNTING
Table of Contents
Introduction:...............................................................................................................................3
Description of the accounting concepts used by Australis Oil and Gas limited:.......................3
Identification of the changes incorporated in the new accounting standard for lease AASB 16:
....................................................................................................................................................5
Summarizing the key disclosure made by the company on its accounting for leases including
on the transitional provision and the effect of transition from AASB 117 to AASB 16:..........8
Conclusion:..............................................................................................................................10
Reference list:...........................................................................................................................12

ADVANCED FINANCIAL ACCOUNTING
Introduction:
In this paper, the accounting concepts used by the organization has been identified
and described. Explanation of the accounting concepts has been done in context of one of the
companies chosen from ASX (Australian stock exchange). With regard to this, the company
chosen is Australis Oil and Gas limited is an oil and gas company owning large gas and oil
licensed area onshore Portugal. Australis is the largest operator and owner of land and it is
also an oil shale basin onshore in United States that has emerged lastly. It has been formed by
the executives and founder of Aurora Oil and Gas limited. In addition to the explanation of
the accounting concepts, a detailed discussion has been made on the lease standard adopted
by the company and how the transition to the new lease standard is accounted. The key
disclosures made by the company in relation to the lease accounting standard and the impact
created by the introduction of the new lease standard on the accounting treatment of lease has
also been evaluated.
Description of the accounting concepts used by Australis Oil and Gas limited:
In this section, different concepts of accounting used by Australis Oil and Gas
Limited is demonstrated. This has been done by retrieving information from the financial
report of the company that highlights the significant accounting policies and the impact of
such policies in the performance of the organization. All the financial statements of the
company has been prepared by adhering to the accounting standards of Australia and all other
applicable standards issued by the International financial reporting standard. The accounting
policies adopted in year 2018 is consistent with what has been adopted in year 2017 and the
accounting policies adopted by the consolidated entity are consistent with the policies of
subsidiaries.