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 read more 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 caruso rhodiola 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.