This report comprehensively examines the impact of the new lease standard, AASB 16, on financial statements, focusing on the accounting changes, advantages, and disadvantages. It begins with an introduction to the standard and the reasons for its implementation, emphasizing the shift from operating to finance leases and its implications for lessees. The report then analyzes the advantages and disadvantages of AASB 16 for BlueScope Steel Limited and Boral Limited, including the impact on their income statements, balance sheets, and cash flow statements. It also includes a summary of the environmental and social aspects of these companies and evaluates the usefulness of AASB 16 to financial statement users, providing insights into the changes in financial metrics, disclosures, and the potential impact on key ratios such as EBITDA and debt-to-equity ratios, as well as the implications for cash flow. The report concludes with a summary of the key findings, highlighting the importance of understanding and adapting to the new standard for accurate financial reporting and decision-making. The report also mentions the impact on the environmental reporting and carbon emissions of the companies, and assesses the companies' efforts to comply with regulatory requirements.