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Press, Journal Article
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right of an object with a maturity of more than one
year it is from an accountancy technical term view a
phenomenon of leasing. With this also retail shops are
impacted, which usually are renting shopping facilities
for the longer term.
But there are also serious consequences for the readers
of balance sheets. As by taking up all leasing objects on
to the balance sheet - exceptions are only objects, which
are rented for a shorter term than twelve months and
which have a value of less than 5000 € - the balance
sheets are lengthened, the equity ratio is then lowered
and the leverage is increased.
Inaddition, through this changeof accounting regulation,
the profit before interest, taxes and depreciation, the
Ebitda, is improving. This ratio is very much liked by
many CFOs as an expression of earnings power.
So far the leasing contracts and their leasing expenses
have shown up in the profit and loss statement, and
there as expenses they lowered the profit. In future
they show up in depreciation and in interest expense -
and thus only after computing the profit before interest,
taxes and depreciation. The Ebitda is improving. With
this, also so called multiples to the Ebitda have to be
adjusted, which per example play a great role when it
comes to takeovers.
For the lessor nothing changes. He, also in future,
has the leasing object on the asset side, meaning the
corporate headquarter. This is liaised with the non logic,
that the lessee , though, has liabilities in his balance
sheet against which there are no receivables at the
lessor.
As every regulation, also this one can be circumvented
in future. For one, one can decompose the leasing or
rental object in such a way, that the single parts fall
below the amount of negligence. For two, one can rent
instead of the equipment the capacity. Then it is formally
not a leasing contract. Certain outsourcing contracts
could also be redefined as service contracts, and then
they would not any longer be leasing contracts. Overall,
however, the observers are of the opinion, that the new
regulations are an improvement. First and foremost it
is said that the comparability of financial statements is
being improved.
In spite of intensive negotiations, it was not achieved, to
attain uniform regulations as per IFRS and as per the US
American GAAP.
FROM
FRANKFURT
ALLGEMEINE
ZEITUNG,
FRANKFURT AM MAIN, GERMANY, FEBRUARY 1,
2016.
RESPONSIBLE FOR TRANSLATION:
GEFIU, THE ASSOCIATION OF CHIEF FINANCIAL
OFFICERS GERMANY
TRANSLATOR: HELMUT SCHNABEL