Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments May 1, 2019 erstellt
Beschreibung:
This paper intends to evaluate the effect of constructive capitalization of operating leases. The operating leases have to be treated appropriately so that the investors who use the financial ratios are enlightened adequately. The comparative model is used to look into the extent of the changes in the financial ratios of selected companies once the operating lease is capitalized. T-test and Wilcoxon test are applied on the basis of the normality of data. Similar studies have been conducted in many developed economies like USA, UK, New Zealand, etc. From the study, it was found that some financial ratios have significant changes, a finding that goes in tune with the hypothesis of the study. Being an emerging economy, in India, the area has not been discussed much. Moreover, the capitalization of operating lease is to be implemented by 1st April 1019 in Ind AS as a part of the latest convergence policy