In January 2016, the IASB published a new standard for accounting for lease contracts. IFRS 16 requires the capitalization of all operating leases, leading to changes in the classification and recognition of lease transactions in the financial statements of lessees, eliminating the previous distinction between operating and financial leases. This dissertation aims to determine the impact of IFRS 16 adoption on Financial Statements. It achieves this through a historical contextualization of the factors leading to the publication of IFRS 16, an analysis of the actual impacts of the standard on the main financial reporting instruments, and a detailed case study of the Portuguese company EDP. The case study of EDP focuses on understanding the impacts of the standard's adoption on the company, with a primary focus on the year 2019, the year of the accounting standard's adoption. The results of this study show that the new standard regulating leases has a statistically significant impact on the financial metrics and ratios analyzed. It also demonstrates that IFRS 16 has become crucial for improving the treatment of financial information and, consequently, increasing transparency for entities that have adopted the standard.
Date of Award | 15 Jul 2024 |
---|
Original language | Portuguese |
---|
Awarding Institution | - Universidade Católica Portuguesa
|
---|
Supervisor | Ricardo Cunha (Supervisor) |
---|
- IFRS
- Leases
- IASB
- Covenants
- Modified retrospective model
- Full retrospective model
- EDP
IFRS 16 e seus impactos nas demonstrações financeiras: o caso da EDP
Silva, D. A. M. (Student). 15 Jul 2024
Student thesis: Master's Thesis