Leases on balance, a level playing field?

Research output: Contribution to JournalArticleAcademicpeer-review

Abstract

Due to changes in lease agreements accounting standards, firms will soon have to recognize operating lease obligations that historically have been kept off-balance sheets (OBS). Research indicates that this change will have substantial effects on the presentation of the financial position and results of firms involved. It is also expected that this will affect decision-making by stakeholders such as boards, managers, bankers and financial analysts. Although it is assumed that these professionals consider all relevant information, it is also known that the smaller the chance of relevant information being overlooked, the better the decision-making. In this study we examine whether IFRS 16 has that positive effect. The results from this research suggest that the accounting treatment under IFRS 16 contributes to the quality but not necessarily to the ease of making investment financing decisions.
LanguageEnglish
Article numberADIAC401
JournalAdvances in Accounting
DOIs
Publication statusAccepted/In press - 23 Nov 2018

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International Financial Reporting Standards
Level playing field
Lease
Decision making
Stakeholders
Obligation
Balance sheet
Financing decisions
Financial analysts
Managers
Bankers
Accounting standards
Operating leases

Cite this

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title = "Leases on balance, a level playing field?",
abstract = "Due to changes in lease agreements accounting standards, firms will soon have to recognize operating lease obligations that historically have been kept off-balance sheets (OBS). Research indicates that this change will have substantial effects on the presentation of the financial position and results of firms involved. It is also expected that this will affect decision-making by stakeholders such as boards, managers, bankers and financial analysts. Although it is assumed that these professionals consider all relevant information, it is also known that the smaller the chance of relevant information being overlooked, the better the decision-making. In this study we examine whether IFRS 16 has that positive effect. The results from this research suggest that the accounting treatment under IFRS 16 contributes to the quality but not necessarily to the ease of making investment financing decisions.",
author = "L.L. Spoor and {van Kints}, R.E.G.A.",
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Leases on balance, a level playing field? / Spoor, L.L.; van Kints, R.E.G.A.

In: Advances in Accounting, 23.11.2018.

Research output: Contribution to JournalArticleAcademicpeer-review

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