On January 1, 2019, companies saw a change in the financial statements structure, since the adoption of IFRS 16 Leases was mandatory. A lease is a contract that gives the lessee the right to use an asset for a specified period of time. The IFRS 16 came with the mission to make the financial statements of companies more transparent, consistent, and, above all, comparable. Its main objective was to contain off-balance sheet leases, since these did not show the reality of leasing operations and hinder comparability between companies, through the requirement to recognize all leases as assets and liabilities. With the adoption of this standard, most operating leases are now recognized as finance leases, with the exception of short-term operating leases, less than 12 months, or low-value operating leases, less than € 5000. Despite the mandatory nature of this standard, companies could choose one of two transition models, the complete retrospective model or the modified retrospective model. Thus, the present study has the main objective to understand if the adoption of this new accounting model significantly impacted the economic and financial ratios of the largest listed companies in the Iberian Peninsula. In addition, an analysis was made of the main items that would be expected to undergo changes in the companies that opted for the full retrospective method.
Date of Award | 7 Jul 2021 |
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Original language | Portuguese |
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Awarding Institution | - Universidade Católica Portuguesa
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Supervisor | Ricardo Cunha (Supervisor) |
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- Leases
- IAS 17
- IFRS 16
- Financial ratios
- PSI-20
- IBEX 35
- Mestrado em Auditoria e Fiscalidade
O impacto da transição para a IFRS 16: o caso das empresas Ibéricas cotadas
Marques, B. F. V. (Student). 7 Jul 2021
Student thesis: Master's Thesis