The impact of IFRS 16 adoption on financial statements of listed South African mining companies
This paper measures the impact of IFRS 16 adoption on financial statements and key financial ratios of mining companies listed on the Johannesburg Stock Exchange (JSE). The IASB has requested research on the adoption of IFRS 16 to understand the impact and assist with post-implementation reviews. Li...
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| Format: | Article |
| Language: | English |
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Taylor & Francis Group
2025-12-01
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| Series: | Cogent Business & Management |
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| Online Access: | https://www.tandfonline.com/doi/10.1080/23311975.2025.2450096 |
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| author | Milan van Wyk Yolandi Enslin |
| author_facet | Milan van Wyk Yolandi Enslin |
| author_sort | Milan van Wyk |
| collection | DOAJ |
| description | This paper measures the impact of IFRS 16 adoption on financial statements and key financial ratios of mining companies listed on the Johannesburg Stock Exchange (JSE). The IASB has requested research on the adoption of IFRS 16 to understand the impact and assist with post-implementation reviews. Limited studies have been conducted to evaluate the post-implementation impact of IFRS 16. The Wilcoxon signed-rank test was used to determine the impact on financial ratios, and the Kruskal-Wallis test was used to evaluate the impact based on company sizes. The findings illustrated that IFRS 16 increased total assets and liabilities post-adoption. Return-on-asset ratios were not significantly impacted; however, significant changes were noted in debt/equity and debt/asset ratios. Another novel finding is that companies of different sizes were similarly affected by adopting IFRS 16, indicating that the monetary impact of IFRS 16 does not bias based on company size. The research assists users of financial statements to understand the impact of the adoption of IFRS 16 and contributes to the post-implementation review process of the IASB. This article contributes insights into lease capitalisation studies by outlining the impact of IFRS 16’s impact on financial statements and relevant ratios. |
| format | Article |
| id | doaj-art-a6eaaefbe41946fd99d345d671056185 |
| institution | Kabale University |
| issn | 2331-1975 |
| language | English |
| publishDate | 2025-12-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Cogent Business & Management |
| spelling | doaj-art-a6eaaefbe41946fd99d345d6710561852025-01-13T05:07:43ZengTaylor & Francis GroupCogent Business & Management2331-19752025-12-0112110.1080/23311975.2025.2450096The impact of IFRS 16 adoption on financial statements of listed South African mining companiesMilan van Wyk0Yolandi Enslin1School of Accountancy, University of Johannesburg, Johannesburg, South AfricaSchool of Accountancy, University of Johannesburg, Johannesburg, South AfricaThis paper measures the impact of IFRS 16 adoption on financial statements and key financial ratios of mining companies listed on the Johannesburg Stock Exchange (JSE). The IASB has requested research on the adoption of IFRS 16 to understand the impact and assist with post-implementation reviews. Limited studies have been conducted to evaluate the post-implementation impact of IFRS 16. The Wilcoxon signed-rank test was used to determine the impact on financial ratios, and the Kruskal-Wallis test was used to evaluate the impact based on company sizes. The findings illustrated that IFRS 16 increased total assets and liabilities post-adoption. Return-on-asset ratios were not significantly impacted; however, significant changes were noted in debt/equity and debt/asset ratios. Another novel finding is that companies of different sizes were similarly affected by adopting IFRS 16, indicating that the monetary impact of IFRS 16 does not bias based on company size. The research assists users of financial statements to understand the impact of the adoption of IFRS 16 and contributes to the post-implementation review process of the IASB. This article contributes insights into lease capitalisation studies by outlining the impact of IFRS 16’s impact on financial statements and relevant ratios.https://www.tandfonline.com/doi/10.1080/23311975.2025.2450096IFRS 16leasesoperating leasefinancial impactpost-implementation reviewBusiness, Management and Accounting |
| spellingShingle | Milan van Wyk Yolandi Enslin The impact of IFRS 16 adoption on financial statements of listed South African mining companies Cogent Business & Management IFRS 16 leases operating lease financial impact post-implementation review Business, Management and Accounting |
| title | The impact of IFRS 16 adoption on financial statements of listed South African mining companies |
| title_full | The impact of IFRS 16 adoption on financial statements of listed South African mining companies |
| title_fullStr | The impact of IFRS 16 adoption on financial statements of listed South African mining companies |
| title_full_unstemmed | The impact of IFRS 16 adoption on financial statements of listed South African mining companies |
| title_short | The impact of IFRS 16 adoption on financial statements of listed South African mining companies |
| title_sort | impact of ifrs 16 adoption on financial statements of listed south african mining companies |
| topic | IFRS 16 leases operating lease financial impact post-implementation review Business, Management and Accounting |
| url | https://www.tandfonline.com/doi/10.1080/23311975.2025.2450096 |
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