Global Journal of Commerce & Management Perspective
Open Access

Abstract

Changes in Equity and Debt Capital Due to Leasing in Accordance with the International Accounting Standards

Panagiotis Papadeas and Katerina Gerofoti

The different accounting treatment of leasing in accordance with the Greek and the International Accounting Standards (IAS 17) significantly affects the Equity (negatively) and the Debt Capitals (positively) for the real estate subsector, the services sector and the Mid Cap and Small Cap companies. The statistically significant impact of the IAS 17 on the Equity and Debt Capitals, as well as the future expansion of the use of the IAS/IFRS allow for an approach of the companies optimum debt ratio and capital structure through the cognitive objects of Finance (weighted average cost of capital) and Accounting (financing of fixed assets) on a macroeconomic level.