This report provides an in-depth analysis of the Australian Accounting Standards Board (AASB) standards AASB 117 and AASB 16, focusing on accounting for leases. It begins with an executive summary outlining the objectives of AASB 117, which concerns the accounting procedures for lessors and lessees, and introduces AASB 16, the new lease standard. The report summarizes the current accounting policies under AASB 117 and the proposed policies under AASB 16, highlighting their differences. It then examines the potential impacts of these changes on financial reports, specifically the balance sheet and income statement, for Myer Ltd. The report also evaluates the potential economic consequences of these changes for Myer Ltd. within the context of accounting theory. The analysis covers the capitalization of leases, its impact on financial ratios, and the application of the accrual concept. The report concludes by emphasizing the increased transparency in lease commitments brought about by the adoption of AASB 16, which requires the recognition of right-of-use assets and lease liabilities. References to relevant accounting standards and literature are included to support the analysis.