The Impact of Application TFRS 16: Lease of the Company Listed in Stock Exchange of Thailand

Abstract

This study aims to investigate the impact of the implementation of the Thai Financial Reporting Standard No. 16 and to examine the factors influencing the choice of accounting practices of listed companies in the Stock Exchange of Thailand. Data were collected from financial statements of listed companies in the Stock Exchange of Thailand, excluding financial institutions due to their different accounting practices and financial statement presentation. This sample size consisted of 377 companies. The researcher analyzed the data by using descriptive statistics and compared the means of financial ratios before and after the implementation of the Thai Financial Reporting Standard No. 16 to determine whether there were any significant differences by using the paired sample t-test. In addition, the factors influencing the choice of accounting practices were analyzed using the logistic regression.
The results of the paired sample t-test showed that the ratio of total assets to paid-up capital, the ratio of long-term debt to equity, and the ratio of profit before interest and tax to total assets were significantly different at the 0.05 level after the implementation of the Thai Financial Reporting Standard No.16. The results of the logistic regression analysis revealed that factors related to company size, age of operation in stock exchange of Thailand, profitability, and the amount of retained earnings of the company were related to the choice of accounting practices prescribed by the Thai Financial Reporting Standard No. 16 at the 0.05 significance level.