Title: IAS 17 vs. IFRS 16 - leasing contract and its consequences on the financial statements

Authors: Gabriel Raita

Addresses: Faculty of Economics and Business Administration, Babeş-Bolyai University, 58-60 Theodor Mihali Street, Cluj-Napoca, Romania

Abstract: After almost ten years of revision, a new version of the IFRS 16 standard for accounting for leases was published in 2016. This replaces the previous regulations on leasing accounting in accordance with IAS 17, IFRIC 4, SIC 15 and SIC 27. The new regulations are to be applied for the first time for fiscal years beginning on 1 January 2019, both according to the requirements of the IASB and after the EU endorsement that took place at the end of 2017. Accordingly, most IFRS users are already preparing for the application of IFRS 16 at full speed. The purpose of this research was to present the results obtained, following a comparative analysis between the provisions of IFRS 16 - IAS 17, in the automotive sector of listed companies. The results of the study indicate that there is a decrease in the net situation following the application of the new regulations. Companies in this sector are most negatively and positively affected by this legislative change due to the large number of leases they hold for fixed assets.

Keywords: leasing; IAS 17; IFRS 16; GAAP.

DOI: 10.1504/IJCA.2021.122957

International Journal of Critical Accounting, 2021 Vol.12 No.6, pp.465 - 476

Received: 02 Nov 2021
Accepted: 21 Mar 2022
Published online: 18 May 2022 *

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