Ex-post research on transitional effects of IFRS 16

Abstract

The objective of this master thesis is to determine the transition effects of implementing IFRS 16 on financial statement figures and corresponding financial ratios across six industries. The analysis is conducted using quantitative data from the companies’ financial statements. Using descriptive analysis and a set of statistical tests, our findings indicate significant impact on firms’ balance sheets and operating profitability, as well as reduced solvency and liquidity ratios, and increased profitability ratios. Furthermore, the impact of the various industries differ significantly, especially highlighted by retail companies. Further research could seek to increase the accuracy of calculated transition effects on various financial statement items as introduced in our paper