Effects of IFRS 16 on Key Financial Ratios of Spanish Companies

  1. CONSTANCIO ZAMORA-RAMÍREZ 1
  2. JOSÉ MORALES-DÍAZ 2
  1. 1 Universidad de Sevilla, Facultad de Ciencias Económicas y Empresariales
  2. 2 Instituto de Estudios Bursátiles (IEB)
Aldizkaria:
Estudios de economía aplicada

ISSN: 1133-3197,  1697-5731

Argitalpen urtea: 2018

Zenbakien izenburua: Efectos de las Normas Internacionales de Información Financiera (NIIF) en los estados financieros de las empresas

Alea: 36

Zenbakia: 2

Orrialdeak: 385-406

Mota: Artikulua

DOI: 10.25115/EEA.V36I2.2536 DIALNET GOOGLE SCHOLAR lock_openDialnet editor

Beste argitalpen batzuk: Estudios de economía aplicada

Laburpena

In this paper, we perform an empirical analysis in order to estimate the adoption effect of the new lease accounting standard (IFRS 16) has had on the financial statements of quoted Spanish companies. Previous literature has not considered the final version of the new standard as it had not yet been issued. In this sense, our methodology design is more consistent with the final standard as regards aspects such as lease term, discount rate, and how lease asset and liability are measured. The adoption of IFRS 16 will have a significant impact on the financial statements of Spanish companies; in fact, it will have an even greater impact than on European firms in those sectors most affected, and said impact will also be greater than that demonstrated in previous literature. There will be an important impact on balance sheet: total assets and liabilities will increase, involving an increase in leverage ratios. Interest coverage ratio will experience an important decrease. The effects will be higher in those sectors with higher lease relative volume, such as retail, hotels, professional services and the media. As in previous studies, we do not find consistent results in relation to profitability. This paper will be of use to analysts since it improves the methodology for estimating the impact of lease capitalization.

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