The Impact of a new way to lease reporting in a retail sector

Kód výsledku v IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F62156489%3A43110%2F18%3A43915349" target="_blank" >RIV/62156489:43110/18:43915349 - isvavai.cz</a>

Výsledek na webu

<a href="http://ocs.ef.jcu.cz/index.php/inproforum/INP2018/paper/viewFile/1083/658" target="_blank" >http://ocs.ef.jcu.cz/index.php/inproforum/INP2018/paper/viewFile/1083/658</a>

DOI - Digital Object Identifier

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Jazyk výsledku

angličtina

Název v původním jazyce

The Impact of a new way to lease reporting in a retail sector

Popis výsledku v původním jazyce

Studies on the use of lease carried out have shown that operational leases are utilized in some sectors more than in others. In these sectors, operating leases represent an alternative to massive capital investment. One of these sectors was chosen to assess the expected impacts of IFRS 16. This is the retail sector. Retail is identified as the sector that should be most affected by the new lease reporting methodology. The most common leased asset is a real estate in this sector. It is either a store with equipment or a retail space. Majority of lease contracts take the form of a medium-term operating leases (3-9 years) with options to extend the lease term. 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%, the median is 95%. For this reason, significant impacts of the new IFRS 16 can be expected in this sector. 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 financial statements of the twenty largest retail companies operating within the EU listed in the EU stock-exchange market, reporting according to IFRS were subject of the research. The study revealed that the amount of assets (rights to use) and unrecognized lease liabilities thatcorresponds to the operating lease is closely related to the type of leased asset and its carrying amount. 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.

Název v anglickém jazyce

The Impact of a new way to lease reporting in a retail sector

Popis výsledku anglicky

Studies on the use of lease carried out have shown that operational leases are utilized in some sectors more than in others. In these sectors, operating leases represent an alternative to massive capital investment. One of these sectors was chosen to assess the expected impacts of IFRS 16. This is the retail sector. Retail is identified as the sector that should be most affected by the new lease reporting methodology. The most common leased asset is a real estate in this sector. It is either a store with equipment or a retail space. Majority of lease contracts take the form of a medium-term operating leases (3-9 years) with options to extend the lease term. 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%, the median is 95%. For this reason, significant impacts of the new IFRS 16 can be expected in this sector. 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 financial statements of the twenty largest retail companies operating within the EU listed in the EU stock-exchange market, reporting according to IFRS were subject of the research. The study revealed that the amount of assets (rights to use) and unrecognized lease liabilities thatcorresponds to the operating lease is closely related to the type of leased asset and its carrying amount. 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.

Druh

D - Stať ve sborníku

CEP obor

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OECD FORD obor

50205 - Accounting

Projekt

<a href="/cs/project/GA18-14082S" target="_blank" >GA18-14082S: Férové korporátní zdanění: Měření dopadu přesunu zisků na rozpočet České republiky</a><br>

Návaznosti

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

Rok uplatnění

2018

Kód důvěrnosti údajů

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

Název statě ve sborníku

Proceedings of the 12th International Scientific Conference INPROFORUM

ISBN

978-80-7394-726-2

ISSN

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e-ISSN

2336-6788

Počet stran výsledku

7

Strana od-do

43-49

Název nakladatele

Jihočeská univerzita v Českých Budějovicích

Místo vydání

České Budějovice

Místo konání akce

České Budějovice

Datum konání akce

1. 11. 2018

Typ akce podle státní příslušnosti

WRD - Celosvětová akce

Kód UT WoS článku

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