This report provides an analysis and evaluation of the new AASB 16 ‘Leases Standard’. This was achieved by comparing lease accounting under the current Australian accounting standards with the new standards. The evolution and outcomes of the joint FASB/IASB ‘Lease Project’ was also used to underpin the primary issues with lease accounting. It was evidenced that investors could now eliminate the need to estimate an entities total debt due to lease expenses. On the other hand, Australian companies would incur increased costs due to implementation expenses. Additionally, the credit rating of companies would decrease, whilst their profitability ratio would increase. The report highlighted the many benefits and implications associated with the AASB 16 ‘Lease Standard’ for companies and its stakeholders. In order to overcome the issues recognised, entities must identify the major weaknesses to their business prior to the new ‘Lease Standard’ implementation, and develop a communication strategy to manage stakeholders and their perceptions.