IFRS 16 - Leases: Challenges, Perspectives and Implications in the Light of Substance Over Form

Matos, Nyalle Barboza; Niyama, Jorge Katsumi

doi:10.17524/repec.v12i3.1858

Cited by 9 publications

(11 citation statements)

References 15 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…On the other hand, decreases in equity are expected because of the standard on retained earnings from capitalization. In Brazil, the study conducted by Barboza and Katsumi (2018) identifies that the implementation of the standard will produce variations in key indicators such as roa, roe and, ebtda, this study also shows that because of the adoption of the standard, an increase in the use of professional judgment in the recognition of economic operations in the financial statements is expected. This partially coincides with the research conducted by Suzuki, Viera and Willrich (2021) which shows variations in the indicators of leverage, capital structure, and profitability of the organizations.…”

Section: Literature Reviewmentioning

confidence: 77%

Effects of the implementation of IFRS 16 leases in companies listed in the Colombian Stock Exchange

Molina

Franco

2022

Rev. fac. cien. econ.

View full text Add to dashboard Cite

The purpose of this research is to analyze possible effects associated with the initial application of International Financial Reporting Standards (ifrs) to the financial statements of 68 companies listed on the Colombian Stock Exchange. This study uses a content analysis technique and the Gray index of conservatism to measure the changes produced by the standard for the years 2019 and 2018. The outcomes show that there is a financial effect for 16.18% of the adopting entities and an impact on indicators such as ROE, debt, and leverage, the latter having an average negative impact. In terms of disclosures, lessees provide more information (with 65% compliance) than lessors (with 55%). Even so, the total of the requirements established in ifrs 16 are not achieved, evidencing how the disclosure objectives of the standard are not fully met for the entities listed in the BVC. Nevertheless, not all the criteria established in ifrs 16 are satisfied. This article contributes to the analysis of the microeconomic effects of the ifrs (specifically ifrs 16), on adopting companies, for which few studies have been conducted in Latin America.

show abstract

Section: Literature Reviewmentioning

confidence: 77%

Effects of the implementation of IFRS 16 leases in companies listed in the Colombian Stock Exchange

Molina

Franco

2022

Rev. fac. cien. econ.

View full text Add to dashboard Cite

show abstract

“…Os padrões estabelecidos pelo IASB e pelo FASB são semelhantes, todavia não são idênticos (Matos, N. B. & Niyama, 2018).…”

Section: Essas Críticas Levaram O International Accounting Standards ...unclassified

Leasing para arrendatárias: um ensaio teórico sobre as divergências entre IASB e FASB após o due process

Moura dos Santos,

Miranda Rodrigues,

Katsumi Niyama

2023

Enf.:Ref. Cont.

View full text Add to dashboard Cite

Diversas críticas às normas contábeis sobre leasing levaram o International Accounting Standards Board (IASB) e o Financial Accounting Standards Board (FASB) a se unirem em busca de uma solução conjunta por meio de um due process, que culminou com a emissão do IFRS 16 pelo IASB e do ASC 842 pelo FASB. Todavia, não foi possível chegar a um consenso total. Assim, este estudo teve por objetivo analisar as principais diferenças sobre a contabilização de leasing para arrendatárias presentes nas normas emitidas por FASB e IASB que persistiram após o processo de harmonização. Para tanto, foi realizada investigação sobre práticas contábeis relativas ao leasing com foco nas normas mais recentes, nos documentos demais emitidos pelos normatizadores e na literatura relevante sobre o assunto. O estudo é relevante por realçar diferenças entre informações contábeis produzidas de acordo com o padrão norte-americano e com o padrão internacional e as questões de comparabilidade daí decorrentes. Como principal diferença, aponta-se que o FASB, ao contrário do IASB, entendeu que ativos advindos de contratos de leasing operacional e financeiro devem ser segregados no balanço patrimonial, tendo em vista que, na visão do órgão norte-americano, os contratos possuem substâncias econômicas diferentes. Todavia, essa diferença não prejudicou o consenso dos dois órgãos no entendimento da essência a ser conferida aos contratos de leasing, que passou a buscar evidenciar se a operação de leasing contém o direito de uso do bem e a geração de benefícios para a companhia, independentemente de ser um financiamento ou um aluguel.

show abstract

“…For Edeigba and Amenkhienan (2017), IAS 17 represented essence over form, as it was one of the standards that most required professional judgment. For Matos and Niyama (2018), when some entities misapplied the standard, they overshadowed the progress of IAS 17. There are opinions that IAS 17 did not need to be replaced, but only corrected by improving the disclosure requirements, as cited by constituents in the comment letters and reported by the IASB in the document Basis for Conclusion (IASB, 2016a, BC 14).…”

Section: Accounting For Leases By Lessees Under Ifrs 16 and Criticism...mentioning

confidence: 99%

“…In this way, it is understood that the new standard does not fully meet the requirements of consensus with accounting theory, with conflicts related to relevance and faithful representation and accounting asymmetry, although it has some characteristics common to principlebased rules, such as not determining how to do things, but explaining how to decide what to do; using the concept of true and fair view, which seeks to reflect the economic and financial reality and the essence of the transaction or economic event at the expense of the legal form; in addition to allowing professional judgment and giving greater freedom in the presentation of information, as highlighted by Matos and Niyama (2018).…”

Section: Accounting For Leases By Lessees Under Ifrs 16 and Criticism...mentioning

confidence: 99%

Sectoral analysis of the impact of IFRS 16 and COVID-19 on the indicators of Brazilian lessees

Cardoso,

Britto

2023

Rev. contab. finanç.

View full text Add to dashboard Cite

The objective of this article was to analyze the impact of International Financial Reporting Standard 16 (IFRS 16) and the coronavirus disease 2019 (COVID-19) pandemic on the indicators of Brazilian lessee companies, segregated by economic sector. The effects of IFRS 16 after its entry into force and of COVID-19 simultaneously with the concession of the International Accounting Standards Board (IASB) on the indicators of lessee companies, segregated by Brazilian economic sectors, were not yet known. The study contributes to the literature by providing evidence on the consequences of the accounting standard setters’ decisions, as well as the COVID-19 pandemic, on the indicators of different economic sectors. The study helps both preparers and regulators to understand the impact of the accounting standardization and COVID-19 on the indicators of lessee companies according to economic activity. For investors, it shows the importance of anticipating the impact of the standards on their decision making. A comparative analysis of the indicators before and after the adoption of the new standard and the pandemic was carried out, as well as a statistical relevance analysis for the indicators of public companies, by economic sector and using the difference in differences method and multiple linear regression with panel data, for the period from 2010 to 2020. The study showed that the impact of IFRS 16 on the indicators was differentiated by sector, with healthcare, oil, gas, and biofuels, and cyclical consumption being the most affected. The standard was not relevant to the value of most sectors, with the exception of healthcare and non-cyclical consumption, showing that investors were positively surprised by the adoption of IFRS 16 by these sectors. The effect of COVID-19, combined with the IASB’s concession to lessees, was positive for profitability and earnings before interest, taxes, depreciation, and amortization (EBITDA) in the healthcare sector, but did not reverse the deterioration in leverage and profitability of the industrial goods sector and the lessees as a whole and the profitability of the cyclical consumption sector, highlighting the partial effectiveness of the measure.

show abstract

IFRS 16 - Leases: Challenges, Perspectives and Implications in the Light of Substance Over Form

Abstract: Todos os direitos, até mesmo de tradução, são reservados. É permitido citar parte de artigos sem autorização prévia, desde que seja identificada a fonte.

Cited by 9 publications

References 15 publications

Effects of the implementation of IFRS 16 leases in companies listed in the Colombian Stock Exchange

Effects of the implementation of IFRS 16 leases in companies listed in the Colombian Stock Exchange

Leasing para arrendatárias: um ensaio teórico sobre as divergências entre IASB e FASB após o due process

Sectoral analysis of the impact of IFRS 16 and COVID-19 on the indicators of Brazilian lessees

Contact Info

Product

Resources

About