Cumulative effect of IFRS 15 and IFRS 16 on maritime company financial statements: a hypothetical case

Belesis, Nicholas; Sorros, John; Karagiorgos, Alkiviadis; Kousounadis, Paraskevas

doi:10.1007/s43546-021-00043-y

Cited by 8 publications

(5 citation statements)

References 5 publications

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“…The changes in the way of recording lead to changes in the data, and Selcuk and Nevzat (2019) argue that many financial ratios change significantly as a result. Specifically, Dí az, Ramí rez (2018) and Belesis et al (2021) support that this would have a systematic impact on leverage and quick ratios. Leverage measures deteriorated significantly (Ireneusz, Bartosz & Marek, 2022).…”

Section: Theoretic Researchmentioning

confidence: 98%

The Effect of Transition from IAS 17 to IFRS 16 — Based on the Case Study of Tesco

2023

FMS

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Leasing is an economic practice in which the lessor borrows a physical item for a certain fee. The lessee is given the right to use the item for a certain period of time. Leasing is an important source of financing for economic units and is of certain importance as an alternative to financing assets through purchase or borrowing. In 2016, the International Accounting Standards Board announced that starting from 2019, the measurement of leases will be changed from International Accounting Standards (IAS 17) to International Financial Report Standard (IFRS 16), which will terminate the off-balance sheet financing of the lessee by recognizing all leases in the lessee’s budget. This paper analyzes the specific impact of IFRS 16 “leasing” in practice. The author summarizes the characteristics of IAS 17 and the problems existing in IAS 17. Following the application of the IFRS 16, subsequent measurement rule changes resulting from the change in the lease classification definition will result in significant changes in the company’s financial statements. By analyzing the data changes in specific cases and the impact on user behavior, this paper verifies the correctness of previous theoretical research and analysis, and tests whether the new criteria will change as expected in practical application. The author chooses Tesco, Britain’s largest retailer, as a sample company here to give a full picture of the problem. Specifically, this paper analyzes the retrospective restatement of Tesco’s 2019 annual report and attempts to alert others to the actions the company has taken to address the adoption and relevance of IFRS 16.

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Section: Theoretic Researchmentioning

confidence: 98%

The Effect of Transition from IAS 17 to IFRS 16 — Based on the Case Study of Tesco

2023

FMS

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“…Por fim, o estudo corrobora a necessidade de avaliar as novas operações de arrendamento sob a ótica de cumprir metas com indicadores de liquidez, solvência e obrigações com empréstimos. Belesis et al (2021) avançaram no estudo sobre IFRS ao examinar os efeitos de duas novas normas contábeis simultaneamente, a IFRS 15 -Receita de contrato com clientes e IFRS 16 -Arrendamentos, nas demonstrações financeiras das empresas marítimas. A partir de uma empresa marítima hipotética, os autores exploram a situação financeira e sua performance por meio do balanço patrimonial e demonstração de resultados nos períodos antes de depois da adoção da IFRS 15 e IFRS 16.…”

Section: Estudos Anterioresunclassified

Uma Avaliação Comparativa dos Impactos do CPC 06 (R2) Arrendamentos sobre as Empresas de Telecomunicações, Comércio e Transporte Aéreo na B3

Dias¹,

Lima²,

Cruz³

2023

RC&C, Rev. Contab. Control.

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O presente estudo tem como objetivo avaliar os impactos da adoção da nova versão do CPC 06 (R2) nas demonstrações financeiras das empresas de Comércio, Telecomunicações e Transporte Aéreo listadas na B3. O estudo caracteriza-se como descritivo, realizado por meio de análise documental. A amostra é composta por 36 empresas definidas conforme listagem geral por setor na B3 no ano de 2020. Na avaliação, foi constatado que todas as empresas divulgaram, em suas notas explicativas, impactos ocasionados pela aplicação do CPC 06 (R2). Quanto aos tipos de contratos, o setor de transporte aéreo foi representado, principalmente, por contratos de aluguel de aeronaves, o setor comercial pelos contratos de imóveis e o de telecomunicações por aluguéis de torres, entretanto, a quantidade de contratos não foi divulgada por todas as empresas. Além disso, das 36 empresas analisadas 28 adotaram a abordagem de transição retrospectiva modificada simples, 4 a retrospectiva completa, 1 prospectiva e 3 não informaram a abordagem de transição. Com relação ao impacto no fim do exercício, o reconhecimento dos direitos de uso e passivos de arrendamento, em relação ao ativo total, o setor mais impactado percentualmente foi o de Transporte Aéreo, entre 40% e 63%, seguido pelo de Comércio e Telecomunicações, que tiveram entre 20% a 39% do seus ativos e passivos concentrados nas rubricas de arrendamentos. A contribuição do estudo é esclarecer aos usuários da informação contábil os julgamentos e seus reflexos da aplicação da nova norma nos procedimentos contábeis.

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“…In addition, their liabilities also increased by 58%, 45% and 25%, and their equity decreased by 60%, 4% and 3%, respectively. Alabood et al (2019) and Belesis et al (2021) assert that recognizing the leases on the balance sheet following IFRS 16’s implementation may cause asset opacity due to asset increases. Furthermore, the impact of these increases on firms’ asset values may be evident intensively (Belesis et al , 2021).…”

Section: Introductionmentioning

confidence: 99%

“…Alabood et al (2019) and Belesis et al (2021) assert that recognizing the leases on the balance sheet following IFRS 16’s implementation may cause asset opacity due to asset increases. Furthermore, the impact of these increases on firms’ asset values may be evident intensively (Belesis et al , 2021). After IFRS 16’s implementation, firms’ assets may become more pronounced or opaque, even though the literature is limited.…”

Section: Introductionmentioning

confidence: 99%

The IFRS 16 implementation in Asia-Pacific countries: enhancing asset pronouncements or opaque information’s conveyance

Utami,

Sumiyana,

Mustakini

et al. 2024

ARJ

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Purpose The purpose of this study is to investigate the implementation of International Financial Reporting Standard (IFRS) 16 in developing countries to enhance asset pronouncements or the quality of opaque accounting information for listed firms’ leasing transactions. Design/methodology/approach This study designed ordinary least square (OLS) regression models to examine the hypotheses in two ordered tests. The first-order test ascertained the association between fundamental accounting information and earnings or stock prices. Then, the second-order test was nested to add the instrument variable to the first-order one. In addition, the researchers selected 17 Asia-Pacific countries. Findings First, this study contributes to the fair value of firms’ asset measurements, and the accounting discipline requires adaptive scalability to produce future potential cash flows. Second, it reduces literature gaps between the pros and cons of the opaqueness of assets. In addition, these research arguments would be the referee for reducing information’s opacity. Finally, this study demonstrates the impact of IFRS 16’s implementation on firms’ conservatism levels and entropy’s information quality, requiring the regulators to accommodate these issues. Originality/value Due to the implementation of IFRS 16, the authors are neutral about the impacted financial statements and political consequences for these Asia-Pacific listed firms and countries. First, we propose the uniqueness of problematic elaboration since implementing IFRS 16 results in a more pronounced or opaque information quality due to vulnerable complexities in the financial statements. Second, this implementation is associated with hierarchical information and conservatism, producing accounting information entropy or negentropy. However, the hierarchy theory suggests various levels of conservatism that could increase or decrease the information’s quality.

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Cumulative effect of IFRS 15 and IFRS 16 on maritime company financial statements: a hypothetical case

Cited by 8 publications

References 5 publications

The Effect of Transition from IAS 17 to IFRS 16 — Based on the Case Study of Tesco

The Effect of Transition from IAS 17 to IFRS 16 — Based on the Case Study of Tesco

Uma Avaliação Comparativa dos Impactos do CPC 06 (R2) Arrendamentos sobre as Empresas de Telecomunicações, Comércio e Transporte Aéreo na B3

The IFRS 16 implementation in Asia-Pacific countries: enhancing asset pronouncements or opaque information’s conveyance

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