Impact of New Lease Reporting on Retailing and Wholesale Companies

Kód výsledku v 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>

Nalezeny alternativní kódy

RIV/02819180:_____/22:#0000154

Výsledek na webu

<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>

Jazyk výsledku

angličtina

Název v původním jazyce

Impact of New Lease Reporting on Retailing and Wholesale Companies

Popis výsledku v původním jazyce

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.

Název v anglickém jazyce

Impact of New Lease Reporting on Retailing and Wholesale Companies

Popis výsledku anglicky

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.

Druh

J_imp - Článek v periodiku v databázi Web of Science

CEP obor

—

OECD FORD obor

50206 - Finance

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

2022

Kód důvěrnosti údajů

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

Název periodika

Montenegrin Journal of Economics

ISSN

1800-5845

e-ISSN

1800-6698

Svazek periodika

18

Číslo periodika v rámci svazku

3

Stát vydavatele periodika

ME - Černá Hora

Počet stran výsledku

10

Strana od-do

89-98

Kód UT WoS článku

000818806900007

EID výsledku v databázi Scopus

2-s2.0-85132862957