Abstract
Due to a change in accounting regulations, TSM Inc. was faced with a major change in the process of recording leases in its financial statements. This case explores the implications of transitioning from IND AS 17 to IND AS 116, by analysing financial statements under the two standards. lt focuses on the shift from off-balance sheet recognition of leases to on-balance sheet recognition of right-of-use assets and lease liabilities. lt also highlights the resulting changes in the financial health and ratios of the company. The case offers a practical context to understand the accounting standards, its financial impact, and broader business implications.
Additional Information
| Product Type | Case |
|---|---|
| Reference No. | F&A0581 |
| Title | No More Off The Books: Lease Accounting At TSM Inc. |
| Pages | 11 |
| Published on | Dec 31, 2025 |
| Year of Event | 2019 |
| Authors | Agarwalla Sobhesh Kumar; Jain lshita ; |
| Area | Finance and Accounting (F&A) |
| Discipline | Accounting |
| Sector | Manufacturing |
| Learning Objective | 1. Understanding the 'what' and 'why' of the old and revised lease accounting rules and the possible reasons for adoption of the new tease accounting rules (lnd AS 116) 2. Understanding how the changes introduced in lnd AS 116 aim to provide a more accurate representation of a company's financial position by eliminating off-balance sheet financing 3. Understanding the accounting treatment of leases under lnd AS 17 and the changed rules (lnd AS 116) 4. Evaluating the impact of the adoption of new lease accounting rules on the financial statements along with changes in financial ratios. |
| Keywords | Lease Accounting |
| Country | India |
| State | Karnataka |
| City | Bangalore |
| Organization | Titan Sports Manufacturing Limited |
| Courses | MBA (PGP), MBA-FABM, MBA-PGPX, EEP, ePGP |
| Access | For All |
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