The study seeks to analyse the implication of the AASB 16 accounting standard for leasing and its impact on the financial performance of Telstra Group. Telstra operates in the Australian telecommunication sector and provides several communication services to the market. AASB 16 have significant effects on the financial performance of Telstra. The new accounting standard for leasing requires companies to disclosure operating leases in the balance sheet. As a result, the amount of interest in rental expenses would increase. Moreover, both the EBITDA and EBIT will increase while the net income will decrease.