Oceňování 2021, 14(1):34-46 | DOI: 10.18267/j.ocenovani.258

The impact of IFRS 16 on EV/EBITDA and business valuation

Pavel Huňáček1, Ondřej Jíša2
1 Ing. Pavel Huňáček - student doktorského studia, Katedra financí a oceňování podniku, VŠE Praha
2 Ing. Ondřej Jíša, Specialista konsolidace, Energetický a průmyslový holding, a.s.

This article deals with an analysis of an impact of accounting standard IFRS 16 leases on EV/EBITDA multiple. The analysis was done on a sample of companies from industry groups "Air transport" and "Retail (Grocery and Food)", which are used by professor Damodaran in calculation of data provided by him. Initially a research of companies included in these groups has been carried out. Then subsequently an impact of IFRS 16 application, based on financial data from financial statements of selected companies, on Enterprise value and its components was assessed. Impacts on EBITDA were also assessed. To conclude the analysis, a total impact on EV/EBITDA multiple was quantified, based on which, recommendations on the use of EV/EBITDA were made.

Keywords: Leases; IFRS 16; EV, EBITDA
Grants and funding:

Článek je zpracován jako jeden z výstupů výzkumného projektu IG104020, který je realizován na Fakultě financí a účetnictví VŠE Praha

JEL classification: G32

Published: August 24, 2021  Show citation

ACS AIP APA ASA Harvard Chicago Chicago Notes IEEE ISO690 MLA NLM Turabian Vancouver
Huňáček, P., & Jíša, O. (2021). The impact of IFRS 16 on EV/EBITDA and business valuation. Oceňování, 14(1), 34-46. doi: 10.18267/j.ocenovani.258
Share...
Download citation
  • BibTeX (.bib)
  • Bookends (.ris)
  • EasyBib (.ris)
  • EndNote (.enw)
  • EndNote 8 (.xml)
  • ISI WoS (.isi)
  • Medlars (.medlars)
  • Mendeley (.ris)
  • MODS (.xml)
  • Papers (.ris)
  • RefWorks (.txt)
  • RefManager (.ris)
  • RIS (.ris)
  • MS Word (.xml)
  • Zotero (.ris)
    • Open full article

    References

    1. BAUMANN, Jørgen Kristoffer; HEGRESTAD, Thor Gunnar (2020): The effect of IFRS 16 on key financial ratios and financing decisions. Master's Thesis. Handelshøyskolen BI.
    2. BUDSKÝ, Patrik; DVOŘÁK, Jan (2017): Průměrné multiplikátory odvětví a jejich komparace s daty z burzy. Oceňování, roč. 2017, č. 4.
    3. CORNAGGIA, Kimberly J.; FRANZEN, Laurel A.; SIMIN, Timothy T. (2013): Bringing leased assets onto the balance sheet. Journal of Corporate Finance, č. 22, s. 345-360. Go to original source...
    4. DELOITTE (2016): New IFRS 16 Leases standard: The impact on business valuation. [online] Dostupné z: https://www2.deloitte.com/content/dam/Deloitte/nl/Documents/mergers-acquisitions/deloitte-nl-ma-ifrs16-impactonbusinessvaluation1.pdf
    5. DUKE, Joanne C.; HSIEH, Su-Jane; SU, Yuli (2009): Operating and synthetic leases: Exploiting financial benefits in the post-Enron era. Advances in Accounting, roč. 25, č. 1, s. 28-39. ISSN 08826110. Go to original source...
    6. DUROCHER, Sylvain (2008): Canadian evidence on the constructive capitalization of operating leases. Accounting Perspectives, roč. 7, č. 3, s. 227-256. ISSN 1911382X. Go to original source...
    7. DVOŘÁKOVÁ, Dana (2016): IFRS 16 Leasingy. Český finanční a účetní časopis, roč. 11, č. 4, s. 83-97. ISSN 18022200. Go to original source...
    8. FÜLBIER, Rolf Uwe; SILVA, Jorge Lirio; PFERDEHIRT, Marc Henrik (2008): Impact of lease capitalization on financial ratios of listed German companies. Schmalenbach Business Review, roč. 60, č. 2. s. 122-144. ISSN 1439-2917. Go to original source...
    9. HARTMAN, B. P. - SAMI, H. (1989): The Impact of the Accounting Treatment of Leasing Contracts on User Decision Making: A Field Experiment. Advances in Accounting, roč. 7, s. 23-35.
    10. IASB [International Accounting Standards Board] (2016a): IFRS 16 Leases, Effects Analysis. IFRS Foundation. [online] Dostupné z: https://www.ifrs.org/-/media/project/leases/ifrs/published-documents/ifrs16-effects-analysis.pdf
    11. IASB [International Accounting Standards Board] (2016b): IFRS 16 Leases. IFRS Foundation. [online] Dostupné z: https://www.ifrs.org/issued-standards/list-of-standards/ifrs-16-leases/
    12. IMHOFF JR, Eugene A.; LIPE, Robert C.; WRIGHT, David W. (1991): Operating leases: Impact of constructive capitalization. Accounting Horizons, roč. 5, č. 1, s. 51.
    13. IMHOFF JR, Eugene A.; LIPE JR, Robert; WRIGHT JR, David W. (1993): The effects of recognition versus disclosure on shareholder risk and executive compensation. Journal of Accounting, Auditing & Finance, roč.8, č. 4, s. 335-368. Go to original source...
    14. MAŘÍK, Miloš. (2011): Metody oceňování podniku: proces ocenění - základní metody a postupy. 3., upr. a rozš. vyd. Praha: Ekopress, 494 s. ISBN 9788086929675.
    15. MORALES-DÍAZ, José; ZAMORA-RAMÍREZ, Constancio (2018): Effects of IFRS 16 on Key Financial Ratios: A New Methological Approach. Accounting in Europe, roč. 15, č. 1, s. 105-133. ISSN 1744-9480 Go to original source...
    16. PWC [Price Waterhouse Coopers] (2016a): IFRS 13: A study on the impact of lease capitalization IFRS 16: The new leases standard. [online] Dostupné z: https://www.pwc.nl/nl/assets/documents/pwc-a-study-on-the-impact-of-lease-capitalisation.pdf
    17. STAŇKOVÁ, Veronika; MAŘÍK, Miloš (2020): K problému výběru porovnatelné skupiny podniků pro ocenění a nástin budoucího výzkumu s vyu itím strojového učení. Oceňování, roč. 13, č. 3-4. Go to original source...
    18. WONG, Karen; JOSHI, Mahesh (2015): The impact of lease capitalisation on financial statements and key ratios: Evidence from Australia. Australasian Accounting, Business and Finance Journal, roč. 9, č. 3, s. 27-44. ISSN 18342000. Go to original source...

    This is an open access article distributed under the terms of the Creative Commons Attribution 4.0 International License (CC BY 4.0), which permits use, distribution, and reproduction in any medium, provided the original publication is properly cited. No use, distribution or reproduction is permitted which does not comply with these terms.


    Return to the content