Risk and rewards versus right of use: financial performance evaluation in the telecommunication sector, focusing on leases

This paper provides an assessment on the adoption of IFRS 16 lease standard for enterprise performance management in European telecommunication industry, focusing to lessee side. The main finding based on annual reports and investor relation communications shows that despite all leases reported under IFRS 16 in the statement of financial positions based on right of use principle, for performance measurement purpose “after lease” proforma adjustments introduced in financial KPIs to correct back principally the capitalisation impacts of non-finance (operating) leases.

X. ÉVF. 2022. Különszám 2-7

DOI: 10.24387/CI.2022.SI.1


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