The implications of capitalising operating leases on airline companies

In 2010, the International Accounting Standard Board and the Financial Accounting Standard Board jointly issued an exposure draft to eliminate the classification of leasing as either a finance lease or an operating lease and consider all leases as a finance lease only. The purpose of this study is to measure the implications of this new exposure draft on airline companies through a scenario analysis at three different discount rates namely are 3%, 6%, and 9%. In addition, eight financial ratios were analysed at each assumed discount rate and the average change of each ratio is used to measure the impact.

Autorentext

• MSc Accounting & Finance, De Montfort University, UK.- BA Accounting & Finance, The Islamic University of Gaza, Palestine - A student of Association of Chartered Certified Accountants- Former Auditor at Ernst and Young- Finance Officer at Education Above All Foundation- Part-time lecturer of accounting at the Islamic Univeristy