The effect of IFRS16 application on financial performance: case study: Air Arabia
Joint Authors
Abbas, Dalia Adil
al-Rashidi, Tariq Abd al-Azim Yusuf
Source
[Journal of Financial and Commercial Research]
Issue
Vol. 23, Issue 1، ج. 1 (31 Mar. 2022), pp.1-23, 23 p.
Publisher
Port Said University Faculty of Commerce
Publication Date
2022-03-31
Country of Publication
Egypt
No. of Pages
23
Main Subjects
Topics
- Profits
- Financial statements
- Debts
- Investment returns
- Case studies
- Inventories
- Rent
- Ratio analysis
- Leases
- Current assets
- Capital productivity
- Profits distribution
- Current liabilities
- Financial performance
Abstract EN
The purpose of this research is to analyze the effect of applying IFRS 16 on the financial performance of Air Arabia.
Aviation sector is one of the most affected sectors from IFRS16 application
Air Arabia interim financial statements for the period ended March 31, 2019 are analyzed and changes in relevant financial statements elements and related ratios are calculated and then compared with interim financial statements for the period ended September 30, 2018 and the expected effects from the literature.
Analysis shows increase in revenues, gross profit, net income, current assets, current liabilities, total assets, total equity, cash from operating activities, and decrease in total liabilities, cash from financing activities, net change in cash, and earnings per share.
For financial ratios, liquidity ratio, return on equity, return on assets, current ratio, they increase while net profit growth ratio debt ratio and debt to equity ratio decrease.
Results have to be interpreted carefully as the effect from IFRS16 application depends on the amount of operating lease and whether the company is a lessor or a lessee.
American Psychological Association (APA)
al-Rashidi, Tariq Abd al-Azim Yusuf& Abbas, Dalia Adil. 2022. The effect of IFRS16 application on financial performance: case study: Air Arabia. [Journal of Financial and Commercial Research]،Vol. 23, no. 1، ج. 1, pp.1-23.
https://search.emarefa.net/detail/BIM-1390789
Modern Language Association (MLA)
al-Rashidi, Tariq Abd al-Azim Yusuf& Abbas, Dalia Adil. The effect of IFRS16 application on financial performance: case study: Air Arabia. [Journal of Financial and Commercial Research] Vol. 23, no. 1, p. 1 (Jan. / Mar. 2022), pp.1-23.
https://search.emarefa.net/detail/BIM-1390789
American Medical Association (AMA)
al-Rashidi, Tariq Abd al-Azim Yusuf& Abbas, Dalia Adil. The effect of IFRS16 application on financial performance: case study: Air Arabia. [Journal of Financial and Commercial Research]. 2022. Vol. 23, no. 1، ج. 1, pp.1-23.
https://search.emarefa.net/detail/BIM-1390789
Data Type
Journal Articles
Language
English
Notes
-
Record ID
BIM-1390789