The new International
Financial Reporting Standard (IFRS) 16 issued by the International Accounting
Standards Board will significantly change accounting for leases. The most
important issue is that operating leases beyond one year will be capitalized,
which means Off-TheBalance Sheet (OBS) financing via operating lease is
effectively eliminated. “IFRS 16: Leases” will fundamentally change the way
that leases are accounted for and reported in financial statements. This paper
tries to illustrate the impact of IFRS 16 on financial statements and financial
ratios. The study is an ex ante research, simulating a predicted outcome of the
new lease standard, which will be in effect after 1 January 2019. For this
purpose, this research is applied to the Turkish retailing companies whose
shares are publicly traded in the Istanbul Stock Exchange. The study uses the
constructive capitalization method for these companies. The results indicate
that new standard will have a statistically significant effect on some of the financial
ratios tested (debt/asset, debt/equity, return on assets (ROA) and return on
equity (ROE)) for 2010 – 2013.
IFRS 16 Operating Leases Accounting for Leases Lease Capitalization Turkish Listed Retailing Companies
Bölüm | Articles |
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Yazarlar | |
Yayımlanma Tarihi | 30 Mart 2016 |
Yayımlandığı Sayı | Yıl 2016 |
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