Accounting for leasing transactions and Turkish Financial Reporting Standard 16: A study on the effect of leases standard on the financial statements of Borsa İstanbul companies

Boards that regulate accounting standards have been published many standards in order to provide present them in a realistic, understandable and transparent manner financial information by using a common accounting language to the internal and external environment of the enterprises and leasing transactions have also found a place within these standards. The International Accounting Standards Board has published International Financial Reporting Standards (IFRS) and leasing transactions within these standards are explained in International Financial Reporting Standards (IFRS) 16. On the other hand, the Public Oversight, Accounting and Auditing Standards Authority has published the Financial Reporting Standards for Large and Medium-sized Enterprises (FRS for LMES) and has explained leasing transactions in the "Chapter 15: Leases" section of the standard. In the standards published by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) leasing transactions are mentioned in "AAOIFI 8: Ljarah and Ljarah Muntahia Bittamleek" section of the standard. In this study, daily book entries were made according to the standards by using various examples, thus showing the differences between both rental types and standards. In addition, financial statements and footnotes of companies operating in BIST 100, excluding financial institutions and holdings, published in the two years after they started to use IFRS 16 and in the previous two years were examined, and related financial statement items and financial ratios were presented. Thus, it was possible to see the effect of the new leasing standard on the financial statements and financial ratios. As a result of the analyzes made, increases were determined in all of the main financial statement items. In addition, a decrease in asset profitability and net profit margin ratios; an increase was observed in the ratios of total debt / total assets and operating profit margin. Keywords: Financial Lease, Operational Lease, IFRS 6, FRS for LMES 15, AAOIFI 8