IDEAS home Printed from
   My bibliography  Save this article

Comparing the effects of IASB Proposal on leasing: an impact assessment of EU listed Companies


  • Tommaso Fabi
  • Enrico Laghi
  • Marco Mattei
  • Alessandro Sura


In August 2010, the IASB and the FASB jointly released an exposure draft proposing a "right-of-use" model for the recognition of lease-related assets and liabilities. The literature shows that leasing is a relevant subject for study. Many studies have investigated the point of view of users and preparers about lease accounting. Moreover, significant studies on the impact assessment of new accounting models for leases have been conducted. The objective of this paper is to perform an impact assessment of the new standard on leases that takes into account companies listed on the main EU stock exchanges. Specifically, this paper try to estimate the magnitude of the change in some ratios that would have been produced by the new treatment with reference to 2011. The results of the paper show that the debt-to-equity ratio increased significantly and, subject to the IASB final decisions on profit or loss accounting, the EBITDA should also have increased, while ROA should not significantly be affected. Furthermore, the results show that the impact of the introduction of the IASB proposal on financial ratios will differ both among industries and among European Union countries.

Suggested Citation

  • Tommaso Fabi & Enrico Laghi & Marco Mattei & Alessandro Sura, 2014. "Comparing the effects of IASB Proposal on leasing: an impact assessment of EU listed Companies," FINANCIAL REPORTING, FrancoAngeli Editore, vol. 2014(2-3-4), pages 17-57.
  • Handle: RePEc:fan:frfrfr:v:html10.3280/fr2014-002002

    Download full text from publisher

    File URL:
    Download Restriction: Single articles can be downloaded buying download credits, for info:

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    1. Rolf Uwe F├╝lbier & Jorge Lirio Silva & Marc Henrik Pferdehirt, 2008. "Impact of Lease Capitalization on Financial Ratios of Listed German Companies," Schmalenbach Business Review (sbr), LMU Munich School of Management, vol. 60(2), pages 122-144, April.
    2. Sharpe, Steven A. & Nguyen, Hien H., 1995. "Capital market imperfections and the incentive to lease," Journal of Financial Economics, Elsevier, vol. 39(2-3), pages 271-294.
    3. Elisabetta Barone & Jacqueline Birt & Soledad Moya, 2014. "Lease Accounting: A Review of Recent Literature," Accounting in Europe, Taylor & Francis Journals, vol. 11(1), pages 35-54, June.
    4. Ang, James & Peterson, Pamela P, 1984. " The Leasing Puzzle," Journal of Finance, American Finance Association, vol. 39(4), pages 1055-1065, September.
    5. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-838, May.
    6. Beattie, Vivien & Goodacre, Alan & Thomson, Sarah Jane, 2006. "International lease-accounting reform and economic consequences: The views of U.K. users and preparers," The International Journal of Accounting, Elsevier, vol. 41(1), pages 75-103.
    7. Vivien Beattie & Alan Goodacre & Sarah Thomson, 2000. "Recognition versus Disclosure: An Investigation of the Impact on Equity Risk Using UK Operating Lease Disclosures," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 27(9&10), pages 1185-1224.
    Full references (including those not matched with items on IDEAS)

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fan:frfrfr:v:html10.3280/fr2014-002002. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Angelo Ventriglia). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.