Effects of new leasing standard IFRS-16 on financial position of businesses; An application on BIST companies

The aim of this study is to compare the IAS-17 and IFRS-16 standards related to financial leasing transactions and to determine the effect of the new accounting standard on the financial ratios of companies traded in selected sectors in BIST. The thesis consists of 4 chapters except the introduction and conclusion sections. In the introduction part, information about the purpose, importance and method of the research and literature review are given. The first part of the thesis is devoted to IAS-17 and this section includes the parts of the standard related to the lessee. The second part of the thesis is devoted to IFRS-16. In this section, regulations of the standard related to lessee are mentioned. In the third part of the thesis, the provisions of IAS-17 and IFRS-16 regarding to lessee are compared. The fourth part of the thesis focuses on how IFRS-16 will affect the financial statements and ratios of the companies traded in BIST. In the conclusion section, the results obtained in the study are summarized briefly and evaluated with the studies in the literature. The obtained results are as follows: The effect of IFRS-16 on liquidity ratios is decreasing. Its effect on financial structure ratios is in the direction of increase in leverage ratio and long term liabilities to passive ratio; decrease in short term liabilities to passive ratio. Its effect on turnover is in the direction of decrease. Its effect on the operating profit ratio is increasing. Its effect on financing expenses over net sales is in the direction of increase. Its effect on other profitability ratios is two-fold. Financial statements and ratios of the firms in different sectors could be affected in different ways and levels from IFRS-16 depending on the intensity of the lease contracts. Its effect on the borrowing coefficient is in the direction of increase.