1) Illustrate why in your opinion retailers with significa
1) Illustrate why in your opinion retailers with significant and long-term lease liabilities arelikely to be more affected by the new accounting standard for leases. Support your answerwith references from AASB117 Leases, your textbook, the resources presented above andfinancial accounting articles and books. 2) Explain how the gearing ratio is usually calculated and why the new accounting standard forleases might boost such ratio, forcing some companies to renegotiate debt contracts withbankers. Support your answer with references from AASB117 Leases, your textbook, theresources presented above and financial accounting articles and books. 3) Complete the following sentences with the data from the financial report 2014 pertaining toMyer Holdings Limited, Harvey Norman Holdings Limited and Kathmandu HoldingsLimited:In the financial year ending 30 June 2014a) Myer has net debt around $ 348 million but the net present value of its lease liabilities(i.e. operating leases liabilities with commitment later than one year) as disclosed in itsfinancial report is estimated to be around $.3.03 billion, so its total debt would jump to$……………………… b) Harvey Norman has net debt of $……………………… but the NPV of its leases is around$……………….., so total debt would rise to $……………………….. c) Kathmandu has net debt of $……………………….. but the NPV of its leases is around$…………………., so total debt would rise to $…………………………. 4) In relation to the answers provided in (3) identify which might be the company most affectedby the change in the accounting standard for lease and justify your answer with referencesfrom AASB117 Leases, your textbook, the resources presented above and financialaccounting articles and books.