Operating Lease Capitalization - Reasons and its Impact on Financial Ratios of WIG30 and sWIG80 Companies

• Autorzy: Przemysław Czajor , Marcin Michalak
• Języki publikacji: EN

Abstrakty

EN

According to current accounting regulations leases are classified as finance lease or operating lease. Assets under operating leases are not recognized on balance sheet, hence they do not influence different financial ratios used to evaluate financial situation and performance of entities. In the literature there has been debate over the need, methods and consequences of operating lease capitalization since many years. This issue seems to be more and more important nowadays, because due to changes of accounting regulations (publishing new standard - IFRS 16), from the beginning of 2019 almost all leases will be treated as finance lease. This means that underlying assets (and corresponding liabilities) will be recognized on balance sheet, what may change financial situation (assessed on the basis of financial ratios) of many companies. The article is an attempt to assess potential impact of operating lease capitalization on chosen financial metrics and ratios of Polish companies. The study performed by the authors of this paper covers 20 companies of sWIG80 index and 11 companies of WIG30 index that disclosed information about operating lease in their consolidated financial statements for year 2015. The result of the empirical study showed that capitalization of operating lease will have a moderate effect on financial ratios. (original abstract)

Słowa kluczowe

EN

Leasing; Financial situation; Financial statements

PL

Leasing; Sytuacja finansowa; Sprawozdanie finansowe

• Czasopismo: Przedsiębiorczość i Zarządzanie
• Rocznik: 2017
• Numer: t. 18, z. 1, cz. 1 Practical and Theoretical Issues in Contemporary Financial Management
• Strony: 23--36

Twórcy

autor

Przemysław Czajor

• Uniwersytet Łódzki

autor

Marcin Michalak

• Uniwersytet Łódzki

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