This report provides a comprehensive analysis of Nanosonics Limited's financial accounting practices, as detailed in its 2018 annual report. It begins by outlining the key accounting concepts employed by the company, including revenue recognition, deferred tax, employee benefits, and derivative financial instruments. The report then delves into the impact of AASB 16, the new accounting standard for leases, contrasting it with the previous standard, AASB 117. It highlights the significant changes introduced by AASB 16, particularly the removal of the distinction between operating and finance leases, and the requirement to recognize all leases as right-of-use assets and corresponding lease liabilities. The report also summarizes the key disclosures Nanosonics Limited has made regarding its accounting for leases, including the transitional provisions and the effect of the transition from AASB 117 to AASB 16, providing specific examples from the company's financial statements to illustrate these changes. The report fulfills the requirements of a financial accounting assignment, providing examples and analysis as requested in the assignment brief. The report is prepared for the Holmes Institute HA3011 Advanced Financial Accounting course, and it addresses the company's financial accounting practices, and the impact of the AASB 16 standard on the company's financial reporting, and the disclosures related to the lease accounting.
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