Abstract:

The UFRS 16 Rental Standard has entered into force by IASB published in January 2016 to apply for periods starting on 1 January 2019 and afterwards. The aim of this study is to identify the financial impacts on in the BISST and operating in certain sectors by the end of the first year (2019) when the UFRS 16 was obligatory to be applied. 227 operating in retail trade, manufacturing, information, construction and retail and transport, storage and communication sectors in BIST 2018 and 2019 year-end reports have been subject to content analysis, the necessary data have been revealed 28 have been analyzed. The findings found that liquidity and profitability rates decreased, the financial lifting rate increased and the interest rate reduced. The dependency (related) samples made according to t tests have shown that the only common rate observed significant differences in the sectors outside the transportation, storage and communication sectors is the active turn rate. In general, the effect of the implementation of the UFRS 16 on financial rates has been found to be the most evident in the retail sector.

Abstract:

IFRS 16 Leases standard was issued by IASB in January 2016 and came into effect to be applied for the periods beginning on or after January 1, 2019. This study aims to determine the financial impacts of IFRS 16 as of the end of the first year (2019) mandatory application on the companies listed in BIST as of May 2020, operating in specific sectors. Content analysis was conducted for 2018 and 2019 year-end reports of 227 entities operating in the retail trade, manufacturing, IT, construction and public works, transportation, storage and telecommunication sectors at BIST, and the reports of 28 entities that disclosed the necessary financial information were analyzed. The results confirm that liquidity and profitability ratios have decreased, financial leverage has increased, and the interest coverage ratio has decreased. According to the dependent (paired) samples t-tests, this study also finds that, except for the transportation, storage, and telecommunication sectors, the only statistically significant difference is observed in asset turnover. And in general, the effects of the application of IFRS 16 on the financial ratios are most evident in the retail trade sector.

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