Research the Impact of the IFRS 16 requirements on the company’s financial performance

Abstract

This study investigates the influence of IFRS 16 on the financial performance of firms, using X5 Retail Group as a case study. The authors discovered that the previous lease accounting model under IAS 17 Leases has led to inaccurate and non-transparent financial reporting, causing dissatisfaction among investors, analysts, and other users. The authors also discuss the primary drivers for the modification in the previous lease accounting model and the subsequent development of IFRS 16 Leases. It is worth noting that lease accounting under IFRS significantly impacts the final financial outcome and the positioning of the firm in the eyes of all stakeholders. Therefore, the relevance of this study arises from the fact that proper lease accounting organization under IFRS is a critical aspect of the primary managerial and financial duties.