Reporting Lease Contracts According to IFRS 16: Case of Romanian Entities

Irina-Doina Pășcan () and Andreea Chindriș
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Irina-Doina Pășcan: “George Emil Palade†University of Medicine
Andreea Chindriș: “George Emil Palade†University of Medicine

Ovidius University Annals, Economic Sciences Series, 2020, vol. XX, issue 2, 1031-1038

Abstract: In 2016, a new accounting standard on leases was issued and it is effective since 2019. According to IFRS 16 “Leases†, the classification of lease contracts as finance or operating leases is eliminated; significant changes could emerge for the lessee. Our study examines the effect of the new accounting model for lease provided by IFRS 16 in case of Romanian entities listed on Bucharest Stock Exchange. We analyzed the financial statements prepared for 2019. The main objectives are to analyze the changes in the balance sheet and the profit or loss account subsequent to the application of IFRS 16 and to measure the conformity with the requirements of this standard. The results show that the new rules regarding lease accounting do not bring significant changes on the financial statements of the lessee. We also find that, on average, Romanian listed entities present a low level of compliance with IFRS 16.

Keywords: IFRS 16 “Leasesâ€; Romanian listed entities; Bucharest Stock Exchange (BSE); rightof-use asset; disclosure index (search for similar items in EconPapers)
JEL-codes: M41 (search for similar items in EconPapers)
Date: 2020
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