Impact of Lease Accounting According to International Financial Reporting Standards on the Indicators of Financial Statements in Kazakhstan
Impact of Lease Accounting According to International Financial Reporting Standards on the Indicators of Financial Statements in Kazakhstan

Summary/Abstract: The IASB (International Accounting Standards Board) published IFRS 16 "Lease" in January 2016 with the effective date on January 01, 2019. This work gives the summary of the main aspects of the standard. The objective of this work is to study the degree of impact of the new standard on the key financial indicators of companies, applying international accounting standards, and cover some of the most important issues that shall be taken into account during preparation for the adoption of IFRS 16.The results obtained during the research have allowed concluding that the new standard obliges to take into account and recognize in the balance sheet the operating lease together with the financial lease and this, in its turn, will make a significant impact on the financial indicators of enterprises of the Republic of Kazakhstan. The most noticeable change of the financial indicators such as debt load, capital leverage, and EBITDA will take place in retail enterprises and air companies. At the same time, the new standard of lease accounting will increase the compatibility of the data in financial statements and it can also influence the special terms of loan contracts, credit ratings, costs for loans and perception of a company by the interested parties.

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