Ændring til årsregnskabsloven for indregning af leasing: Effekt på regnskabets retvisende billede og konsekvenser ved implementering

Emma Kronow & Thea Ruder Jul Vase

Student thesis: Diploma thesis


During the last few years, there has been an increasing trend for lease of assets rather than purchasing these. This trend appears in all kind of industries, and especially in industries where the companies are holding a relatively large amount of fixed tangible assets as part of the total assets. The Danish Financial Statements Act changed 20th December 2018 allowing companies to either reflect lease contracts in alignment with the previously applicable International Accounting Standard 17 (IAS 17) or, the newly implemented International Financial Reporting Standard 16 (IFRS 16). The idea behind the change of the international standards, and change of the Danish Financial Statements Act, was to improve the comparability of financial statements between companies within the same industry. Our main reason for writing this thesis is to examine the effects on the true and fair view of implementing IFRS 16 in the financial statement of an entrepreneur company applicable to reporting class C (large) entities. Furthermore, consequences related to change of the accounting principles for a company have been analyzed. Quite a few different methods have been used for data collection to write this thesis, such as webpages, articles and a variety of books written by qualified experts. Furthermore, IAS 17, IFRS 16 and the change in the regulations of the Danish Financial Statements Act have been used to obtain relevant knowledge for discussion of our thesis related to the change of the regulation and how this will affect the true and fair view of the financial statement. In order to reality check our thesis and analysis and the consequences for the companies, we interviewed a specialist (State Authorized Public Accountant) and a Corporate Customers Bank Advisor. The main difference between the two standards is the classification. According to IAS 17, lease agreements are classified as either an operating lease or finance lease. According to IFRS 16, all lease agreements must in general be reflected as finance lease in the balance sheet. The change of the accounting principle is reflected in the fact that the financial statements will show a larger amount of assets and liabilities, derived from the fact that the previously classified operational lease is no longer a contingent liability in the notes of the financial statements, but reflected in the balance sheet. This influences the financial ratios i.e. a lower rate of return, solvency ratio and liquidity ratio. Accordingly, this will change the readers view of the financial statement of the annual report. The thesis concludes that implementation of lease contracts according to IFRS 16 positively contributes to a higher degree of a true and fair view of the financial statement. Derived from analyzing the implementation of IFRS 16 in the financial statement of Arkil A/S and interview of a specialist (State Authorized Public 2 Accountant) this argument has been confirmed. On the other hand, implementation of IFRS 16 on leases in the financial statement is causing relatively heavy administratively burdens and one could argue that the gains of the change in recognition method do not correspond to the heavy administrative work - and corresponding cost - related to the implementation. Accordingly, we do not expect Danish companies to a larger extent take advantage of this possibility to change their accounting principles for recognition of lease contracts from IAS 17 to IFRS 16 until they eventually could be required to do so if alternatives at some stage are narrowed in to only accepting IFRS 16.

EducationsGraduate Diploma in Accounting and Financial Management, (Diploma Programme) Final Thesis
Publication date2019
Number of pages104