b'EQUESTRIAN AUSTRALIA LIMITED ABN 19 077 455 755NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2019 2. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTSCertain accounting estimates include assumptions concerning the future, which, by definition, will seldom represent actual results. Estimates and assumptions based on future events have a significant inherent risk, and where future events are not as anticipated there could be a material impact on the carrying amounts of the assets and liabilities discussed below.(a) Long service leaveNet present value calculations are used to estimate the long service leave provision.3. ACCOUNTINGSTANDARDSANDINTERPRETATIONSISSUEDBUTNOT OPERATIVE AT JUNE 2019TheAASBhasissuedanumberofnewandamendedAccountingStandardsand interpretations that have mandatory application dates for future reporting periods, some of which are relevant to the Company. The Company has decided not to early adopt any of these new and amended pronouncements. The Companys assessment of the new and amended pronouncements that are relevant to the Company but applicable in future reporting periods is set out below.AASB 16: LeasesAASB 16: Leases (applicable for annual reporting periods commencing on or after 1 January 2019).AASB 16 will replace AASB 117: Leases and introduces a single lessee accounting model that will require a lessee to recognise right-of-use assets and lease liabilities for all leases with a term of more than 12 months, unless the underlying asset is of low value. Right-of-use assets are initially measured at their cost and lease liabilities are initially measured on a present value basis.Subsequent to initial recognition right-of-use assets are accounted for on a similar basis to non-financial assets, whereby the right-of-use asset is accounted for in accordance with a cost model unless the underlying asset is accounted for on a revaluation basis, in which case if the underlying asset is:oinvestment property, the lessee applies the fair value model in AASB 140: Investment Property to the right-of-use asset; oroproperty, plant or equipment, the lessee can elect to apply the revaluation model in AASB 116: Property, Plant and Equipment to all of the right-of-use assets that relate to that class of property, plant and equipment; andolease liabilities are accounted for on a similar basis as other financial liabilities, whereby interest expense is recognised in respect of the liability and the carrying amount of the liability is reduced to reflect lease payments made. \x03\x0362'