This report examines the impact of AASB 16 on Australian leasing firms. The introduction highlights the changes in lease accounting standards and the significance of financial reporting characteristics like relevance and faithful representation. The paper analyzes the implications of AASB 16 on lease reporting, focusing on the recognition of right-of-use assets and lease liabilities, and its effect on key financial metrics such as EBITDA and debt. It discusses the classification of leases (Type A and Type B) and their impact on balance sheets and income statements, including examples of financial statement presentations. The report further explores how the new standards affect business agreements, banking covenants, and dividend planning, as well as the increased expenses and risks associated with leasing. The conclusion emphasizes the importance of AASB 16 in improving the quality and reliability of financial reports, ensuring compliance with financial statement characteristics.