Impact of New Lease Reporting on Retailing and Wholesale Companies

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F62156489%3A43110%2F22%3A43921762" target="_blank" >RIV/62156489:43110/22:43921762 - isvavai.cz</a>

Alternative codes found

RIV/02819180:_____/22:#0000154

Result on the web

<a href="https://doi.org/10.14254/1800-5845/2022.18-3.7" target="_blank" >https://doi.org/10.14254/1800-5845/2022.18-3.7</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.14254/1800-5845/2022.18-3.7" target="_blank" >10.14254/1800-5845/2022.18-3.7</a>

Result language

angličtina

Original language name

Impact of New Lease Reporting on Retailing and Wholesale Companies

Original language description

Effect of application of IFRS 16 could differ across industries. Retail and wholesale companies are expected to be most significantly affected by the changes in the new lease requirements. Retail space rental is a fundamental part of the business model of these entities. The ratio of operating and finance leases for selected companies in the retail sector is 96% in average. An important factor influencing the magnitude of the changes is not only the percentage of the operating lease to the total lease, but also the volume of unrecognized assets and leasing liabilities. The main aim of the paper is to evaluate the impact of the new lease reporting in the lease intensive industries, especially to keep comparability of financial indicators. Financial statements data of EU retail and wholesale companies are subject of the research. Leases and financial statements and transformed financial statements using IFRS 16 for operating lease reporting are the subject of comparison. The information concerning the operating lease presented in the notes is utilized for financial statements transformation. The financial statements items were selected as significant indicators: Long-term assets, B/S total, Equity, Liability, EBIT, EBITDA, Depreciation, Interest Cost. The changes in affected financial statements&apos; items and financial analysis ratios were researched. The average increase in total assets is 37% and debts 55%. The decrease in equity of 4.5% is due to the fact that the carrying amount of the leased asset usually decreases faster than the carrying amount of the lease liability.

Czech name

—

Czech description

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Type

J_imp - Article in a specialist periodical, which is included in the Web of Science database

CEP classification

—

OECD FORD branch

50206 - Finance

Project

<a href="/en/project/GA18-14082S" target="_blank" >GA18-14082S: Fair corporate taxation: Measurement of the impact of the corporate profit shifting on the budget of the Czech Republic</a><br>

Continuities

P - Projekt vyzkumu a vyvoje financovany z verejnych zdroju (s odkazem do CEP)

Publication year

2022

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical

Montenegrin Journal of Economics

ISSN

1800-5845

e-ISSN

1800-6698

Volume of the periodical

18

Issue of the periodical within the volume

3

Country of publishing house

ME - MONTENEGRO

Number of pages

10

Pages from-to

89-98

UT code for WoS article

000818806900007

EID of the result in the Scopus database

2-s2.0-85132862957