Please use this identifier to cite or link to this item: http://hdl.handle.net/2440/116002
Citations
Scopus Web of Science® Altmetric
?
?
Type: Journal article
Title: Converting financial statements: operating to capitalised leases
Author: Xu, W.
Davidson, R.A.
Cheong, C.S.
Citation: Pacific Accounting Review, 2017; 29(1):34-54
Publisher: Emerald Publishing
Issue Date: 2017
ISSN: 0114-0582
Statement of
Responsibility: 
Wei Xu, Robyn Alexandra Davidson and Chee Seng Cheong
Abstract: Purpose – The purpose of this paper is to examine how capitalising operating leases under IFRS 16/AASB 16 affects the financial statements and value relevance of financial information. In doing so, limitations of exiting methods are highlighted and improved upon. Design/methodology/approach – Imhoff et al.’s (1991) constructive method for capitalising operating leases is improved upon and used to restate the financial statements of 165 S&P/ASX200 companies. The financial position, key ratios and value relevance are tested for significant differences. Findings – The results provide evidence that capitalising operating leases affects financial statements and value relevance. Originality/value – Imhoff et al.’s (1991) constructive method has been refined, providing an improved method for capitalising operating leases than the one that has been used in the past. From a practical perspective, this research provides evidence supporting the “right-of-use” method proposed by the IASB which will see previous off-balance-sheet leases recognised.
Keywords: Value relevance; AASB 16; capitalised leases; constructive method; IFRS 16; leases
Rights: © Emerald Publishing Limited
RMID: 0030081398
DOI: 10.1108/PAR-01-2016-0003
Appears in Collections:Economics publications

Files in This Item:
There are no files associated with this item.


Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.