A Study on the Effect of International Financial Reporting Standards 16: Leases Standard on the Financial Statements of Borsa Istanbul Companies

The boards that regulate accounting paradigms have published the IFRS standard to guide companies in presenting their financial information honestly, explicably, and transparently. One issue that the IFRS standard deals with is leasing transactions, which are explained in the “IFRS 16 Leases” sectio...

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Main Author: Berke Koç
Format: Article
Language:English
Published: Istanbul University Press 2022-01-01
Series:Muhasebe Enstitüsü Dergisi
Subjects:
Online Access:https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/464F3F58F29F48D69E0C1E4C7780687E
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author Berke Koç
author_facet Berke Koç
author_sort Berke Koç
collection DOAJ
description The boards that regulate accounting paradigms have published the IFRS standard to guide companies in presenting their financial information honestly, explicably, and transparently. One issue that the IFRS standard deals with is leasing transactions, which are explained in the “IFRS 16 Leases” section of the relevant standard. This study examines the financial statements of the companies operating in the BIST 100 index, excluding financial institutions and holdings, for the two years before and years after the implementation of the TFRS 16 standard. The study then presents the financial statement items affected by the leasing transactions and the companies’ financial ratios, thus showing the effect of the new leasing standard on the financial statements and ratios. As a result of the analyses, increases were determined in all of the main financial statement items. In addition to decrease in asset profitability and net profit margin ratios, an increase was observed in the ratios of total debt/total assets and operating profit margin.
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spelling doaj-art-c633178db3c4465aa50c5cee98e47fab2025-08-20T02:57:00ZengIstanbul University PressMuhasebe Enstitüsü Dergisi2667-69822022-01-016611313610.26650/MED.1004034123456A Study on the Effect of International Financial Reporting Standards 16: Leases Standard on the Financial Statements of Borsa Istanbul CompaniesBerke Koç0https://orcid.org/0000-0003-4889-3816Kırklareli Üniversitesi, Kirklareli, TurkiyeThe boards that regulate accounting paradigms have published the IFRS standard to guide companies in presenting their financial information honestly, explicably, and transparently. One issue that the IFRS standard deals with is leasing transactions, which are explained in the “IFRS 16 Leases” section of the relevant standard. This study examines the financial statements of the companies operating in the BIST 100 index, excluding financial institutions and holdings, for the two years before and years after the implementation of the TFRS 16 standard. The study then presents the financial statement items affected by the leasing transactions and the companies’ financial ratios, thus showing the effect of the new leasing standard on the financial statements and ratios. As a result of the analyses, increases were determined in all of the main financial statement items. In addition to decrease in asset profitability and net profit margin ratios, an increase was observed in the ratios of total debt/total assets and operating profit margin.https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/464F3F58F29F48D69E0C1E4C7780687Efinancial leaseoperational leaseifrs 16
spellingShingle Berke Koç
A Study on the Effect of International Financial Reporting Standards 16: Leases Standard on the Financial Statements of Borsa Istanbul Companies
Muhasebe Enstitüsü Dergisi
financial lease
operational lease
ifrs 16
title A Study on the Effect of International Financial Reporting Standards 16: Leases Standard on the Financial Statements of Borsa Istanbul Companies
title_full A Study on the Effect of International Financial Reporting Standards 16: Leases Standard on the Financial Statements of Borsa Istanbul Companies
title_fullStr A Study on the Effect of International Financial Reporting Standards 16: Leases Standard on the Financial Statements of Borsa Istanbul Companies
title_full_unstemmed A Study on the Effect of International Financial Reporting Standards 16: Leases Standard on the Financial Statements of Borsa Istanbul Companies
title_short A Study on the Effect of International Financial Reporting Standards 16: Leases Standard on the Financial Statements of Borsa Istanbul Companies
title_sort study on the effect of international financial reporting standards 16 leases standard on the financial statements of borsa istanbul companies
topic financial lease
operational lease
ifrs 16
url https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/464F3F58F29F48D69E0C1E4C7780687E
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AT berkekoc studyontheeffectofinternationalfinancialreportingstandards16leasesstandardonthefinancialstatementsofborsaistanbulcompanies