Galt, Harold Hermanus.Cumming, Carley Jane.2020-11-172020-11-1720192019https://researchspace.ukzn.ac.za/handle/10413/18866Masters Degree. University of KwaZulu-Natal, Durban.In South Africa and globally, leasing forms part of a significant source of financing for companies. On the 13th January 2016, the IASB released the new lease standard, IFRS 16, which is effective for periods beginning on or after 1 January 2019. For entities that have a significant number of operating leases, IFRS 16 is anticipated to materially affect the figures in the financial statements, capital structure, as well as liquidity and profitability ratios. Numerous stakeholders’ rely on these reported figures and ratios when making entity-related decisions. A constructive capitalisation model shows the likely impact IFRS 16 will have on a company’s financial statements and ratios when implemented. This study analysed the likely impact that IFRS 16 is expected to have on the financial position, financial performance and market ratios for technology and telecommunication companies when a constructive capitalisation model is used. The audited financial statements were obtained for the population of JSE listed technology and telecommunication companies and the constructive capitalisation model applied. The analysis of the data reveals that when the constructive capitalisation model is applied it results in changes in the financial performance, financial position and market ratios for the technology population. However, the changes in the financial position, financial performance and market ratios for the telecommunication population when the constructive capitalisation model is applied, is not considered significant. Keywords: constructive capitalisation, finance leases, IFRS 16, off-balance sheet financing, operating leasesenIFRS 16.Operating leases.Constructive capitalisation.Off-balance sheet financing.Thesis