2026-04-17T17:40:24.332Z http://ezaposleni.singidunum.ac.rs/rest/sciNaucniRezultati/oai

ezaposleni.singidunum.ac.rs/rest/sciNaucniRezultati/oai:2:9213 2022-12-23T19:20:16Z 2

Applying Benfordʼs Law on assessing the reliability of financial information in European companies from the rental and leasing sector before and after the adoption of IFRS 16 2022 http://ezaposleni.singidunum.ac.rs/rest/sciNaucniRezultati/oai/record/2/9213 https://ztr.skwp.pl/resources/html/article/details?id=234314 Luty, P. Petković, M. Vavrek, R. Purpose: The purpose of the manuscript is to ascertain whether the introduction of IFRS 16 changed the reliability of financial information in companies in the NACE 77 sector. Benfordʼs Law was applied to identify errors within a selected sample of European leasing and rental companies (NACE code 77). Methodology/approach: The study examines accounting manipulations in positive profit and loss (P&L) before tax in 2015 and 2019; Part 2 explores manipulation within negative P&L before tax in 2015 and 2019; Part 3 discovers manipulations in operating revenue in 2015 and 2019. In the empirical part of the study, MAD and Kolmogorov–Smirnov tests were applied. Findings: The study confirmed that the reliability of financial information did not change even though the small differences in the distribution of digits appeared, before and after IFRS adoption. Research limitations: Limitations from this research refers to the sample size; only com-panies from the leasing and rental industries are included in the study Originality/value: The study adopts Benford's Law in accounting for IFRS leasing ad-justments. Keywords: IFRS 16, adoption, Benford’s Law, profitability, European companies. article 10.5604/01.3001.0016.1302 46 4 51 68 1641-4381 Theoretical Journal of Accounting