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The Impact of IFRS 16 on the Companies’ Key Performance Indicators: Limits, Advantages and Drawbacks

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  • Alin Eliodor Tanase
  • Traian Ovidiu Calota
  • Florin Razvan Oncioiu

Abstract

This article focuses on the impact of the new standard IFRS 16 Leases on the companies’ key performance indicators. The magnitude of this impact could be said to change depending on the usage density of the lease in the companies and also depending on the sector they are in. The results show that future transactions may be influenced by IFRS 16 such as sale and leaseback, acquisitions and mergers, and lease vs. buying.

Suggested Citation

  • Alin Eliodor Tanase & Traian Ovidiu Calota & Florin Razvan Oncioiu, 2018. "The Impact of IFRS 16 on the Companies’ Key Performance Indicators: Limits, Advantages and Drawbacks," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 4(1), pages 54-59, March.
    • Handle: RePEc:khe:scajes:v:4:y:2018:i:1:p:54-59
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    References listed on IDEAS

    as
    1. Deborah BRANSWIJCK & Stefanie LONGUEVILLE & Patricia EVERAERT, 2011. "The Financial Impact of the Proposed Amendments to IAS 17: Evidence from Belgium and the Netherlands," Journal of Accounting and Management Information Systems, Faculty of Accounting and Management Information Systems, The Bucharest University of Economic Studies, vol. 10(2), pages 275-294, June.
    2. Sylvain Durocher, 2008. "Canadian Evidence on the Constructive Capitalization of Operating Leases," Accounting Perspectives, John Wiley & Sons, vol. 7(3), pages 227-256, August.
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    More about this item

    Keywords

    IFRS16; IAS 17; Operating Leases; Financial Leases;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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