VGU RESEARCH REPOSITORY
Please use this identifier to cite or link to this item:
https://epub.vgu.edu.vn/handle/dlibvgu/635| DC Field | Value | Language |
|---|---|---|
| dc.contributor.author | Huynh Ngoc Thao Uyen | en_US |
| dc.date.accessioned | 2020-03-12T17:06:04Z | - |
| dc.date.available | 2020-03-12T17:06:04Z | - |
| dc.date.issued | 2016 | - |
| dc.identifier.uri | http://epub.vgu.edu.vn/handle/dlibvgu/635 | - |
| dc.description.abstract | Introduction: Leases have long become a crucial part in companies’ mechanisms to gain access to financial resources. Lease contracts are widely used as it let the ompanies to get control over the desired assets without having to acquire them. According to the old leases accounting standard, IAS 17, leases contracts are lassified as either financial leases or operating leases. However, operating leases are off-balance sheet and therefore, companies had tendencies to choose operating leases compared to financial leases, which are on-balance sheet. A substantial proportion of the lease commitments (more than 85 percent) do not appear on companies’ balance sheets (IFRS, Fact sheet: 1). Based on the statistics of the US Securities and Exchange Commission (SEC) in 2005, US public companies are said to have the amount of off balance sheet leases of nearly 1.3 trillion USD. Consequently, under IAS 17, investors and analysts cannot have a complete understanding of the companies’ financial positions. This results in an unnecessary higher costs and efforts for investors and analysts to get a precise and complete overview of the interested entities. In response to these controversial issues of IAS 17, in January 2016 the International Accounting Standard Board (IASB) issued the new lease standard, IFRS 16, which will be effective starting from 1 January, 2019. The IASB and FASB have worked jointly to come up with this project, with an aim to improve the transparency of information about leases. The major change is that IFRS 16 eliminates the classification test of lease contracts and introduces a single accounting model for lessees. It requires lessees to recognize nearly all the leases on their balance sheets. On the basis of the recent literature of IFRS 16, mainly from the analysis of the Big 4 companies – KPMG, PwC, EY and Deloitte, this paper investigates the impacts of IFRS 16 on companies’ financial positions and on perspective of analysts as well as investors. The paper is structured as followed: the second section focuses on the main differences between the new lease standard, IFRS 16 and the old one, IAS 17. The third section discusses the 2 major impacts of the transition on financial statements of the lessees on the one hand, and on the economy as a whole on the other hand. The answer to the question whether the new standard will be useful for investors and analysts is discussed in the fourth section. Last but not least, the fifth section summarizes the effects of the transition of lease accounting standard. | en_US |
| dc.language.iso | en | en_US |
| dc.publisher | Vietnamese-German University | en_US |
| dc.rights | Attribution-NonCommercial 4.0 International | * |
| dc.rights.uri | https://creativecommons.org/licenses/by-nc/4.0/ | * |
| dc.subject | Ieases | en_US |
| dc.subject | Accounting standards | en_US |
| dc.subject | Analysts and investors | en_US |
| dc.title | Accounting for leases – does the new standard improve issuing useful information to investors and analysts? | en_US |
| dc.type | Thesis | en_US |
| item.fulltext | With Fulltext | - |
| item.languageiso639-1 | other | - |
| item.grantfulltext | restricted | - |
| Appears in Collections: | Finance & Accounting (FA) | |
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| File | Description | Size | Format | Existing users please Login |
|---|---|---|---|---|
| Accounting for leases – does the new standard improve issuing useful information to investors and analysts.pdf | 1.21 MB | Adobe PDF |
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