This report provides a critical review of the Australian accounting standard for lease financing, specifically focusing on AASB 16. It begins by examining the drawbacks of the previous standard, AASB 117, and explains the necessity for change. The report details the incorporation of changes in the new standard, highlighting the impact on entities with significant lease financing. It analyzes why companies preferred to classify leases as operating leases under the old standard and discusses the expected improvements in comparability as per IASB. The report also covers the impact of AASB 16 implementation on the leasing market and includes key disclosures from BHP Billiton regarding the transition. The analysis underscores the importance of understanding the shift from the old standard to the new one and its implications for financial reporting and decision-making. The report concludes with a comprehensive overview of the key changes and their impact.