This report examines the impact of applying AASB 16, the new accounting standard for leases, on Qantas's financial statements. The analysis focuses on the removal of the distinction between operating and financial leases, a significant change impacting businesses in Australia. The report details the recognition of lease obligations as both assets and liabilities, leading to a more accurate reflection of a company's financial position. It also discusses the potential downsides, such as increased reporting complexity and higher initial lease expenses. The report further explores the effects on operating profit, EBITDA, and cash flow, ultimately providing a more comprehensive understanding of a company's financial performance for stakeholders, allowing them to make more informed decisions. The report also includes a bibliography of relevant sources used in the analysis of the impact of AASB 16.