Changes made by International Financial Reporting Standart 16 leases and possible effects on financial reporting

The purpose of this thesis is to compare the International Accounting Standard IAS 17-Leases with International Financial Reporting Standard 16-Leases, which was implemented in January 2019, and research how IFRS 16 would affect financial statements and some financial ratios. The most important difference between the IFRS 16 and the IAS 17 is recognition of operational leases in balance sheet as assets and lease liabilities. It means, not only financial leases transactions but also operational leases transactions will be reported in the balance sheet. With the introduction of the IFRS 16, businesses that use operating leases in high amounts and keep them off the balance sheets before will experience a major increase in assets and liabilities, and changes in some financial ratios and earnings before interest and tax associated with them. In this study, how IFRS 16 would affect financial statements and certain financial ratios has been investigated.