Impacts of TFRS 16 Adoption on the Value Relevance of Accounting Information: Evidence from the Stock Exchange of Thailand

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Chutinuch Indraprasit
Nattapan Tantikul


The objectives of this study are to examine the value relevance of accounting information affected by Thai Financial Reporting Standard 16: Leases (TFRS 16) and to study whether there are significant alterations to the value relevance of accounting information after TFRS 16 adoption. The study used the companies listed in the SET100 index on the Stock Exchange of Thailand as samples. Ohlson’s model was adjusted by adding the variables related to lease transactions, namely right-of-use (ROU) items, which are the book value of ROU, and expenses related to ROU items as exploratory variables. The study duration was 2020–2022. The main results showed that the book value of ROU and expenses related to ROU items were relevant. Moreover, expenses related to ROU items were more relevant than the book value of ROU itself. According to the incremental value relevance of ROU items, the results indicated that the joint effect of ROU items and traditional accounting measures, such as book value of equity and earnings, was indicated to be more valuable and relevant than traditional accounting measures alone. Therefore, overall, ROU items provided incremental value and relevance. However, when considering the influence of TFRS 16 on the statement of financial position and income statement separately, the book value of ROU did not provide incremental value relevance, while expenses related to ROU items provided incremental value relevance.

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Indraprasit, C., & Tantikul, N. (2024). Impacts of TFRS 16 Adoption on the Value Relevance of Accounting Information: Evidence from the Stock Exchange of Thailand. Rajapark Journal, 18(57), 149–170. Retrieved from
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