IDEAS home Printed from https://ideas.repec.org/a/epw/ejbmr0/v7y2022i2id51383.html

Development of a Disclosure Index for Lease Accounting Policies: Evidence from Romanian Banks

Author

Listed:
  • Denis Adrian Levanti

    (Bucharest University of Economic Studies, Romania)

Abstract

Leasing is an important financing solution used by banks to carry out their daily operations. From a lessee perspective, IFRS 16 changed completely the accounting landscape for lease contracts. A right of use assets and a corresponding lease liability must be recognized in the lessees’ balance sheets. Additionally, extensive disclosures are required. This paper aims to study the extent to which Romanian banks comply with IFRS 16 disclosure requirements. The population includes 23 Romanian banks. To carry out this research, we employed the content analysis technique and reviewed the IFRS 16 disclosures from the 2020 IFRS financial statements. To measure compliance, we developed a dichotomous and unweighted disclosure checklist, which includes 34 items grouped into six categories. The results of our study revealed that, in the first year following the IFRS 16 transition, Romanian banks recorded an average 62% level of compliance with IFRS 16 disclosure requirements. There is a lot of room for improvement in the following years, especially for top ten ranked banks.

Suggested Citation

  • Denis Adrian Levanti, 2022. "Development of a Disclosure Index for Lease Accounting Policies: Evidence from Romanian Banks," European Journal of Business and Management Research, European Open Science, vol. 7(2), pages 295-299, March.
    • Handle: RePEc:epw:ejbmr0:v:7:y:2022:i:2:id:51383
    DOI: 10.24018/ejbmr.2022.7.2.1383
    as

    Download full text from publisher

    File URL: https://eu-opensci.org/index.php/ejbmr/article/view/51383
    File Function: Abstract page
    Download Restriction: no
    File URL: https://eu-opensci.org/index.php/ejbmr/article/download/51383/7373
    File Function: Full text
    Download Restriction: no
    File URL: https://libkey.io/10.24018/ejbmr.2022.7.2.1383?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:epw:ejbmr0:v:7:y:2022:i:2:id:51383. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Support Team (email available below). General contact details of provider: https://eu-opensci.org/index.php/ejbmr .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.