Sporron, EbbaWestergård, Ella2025-08-112025-08-112025-08-11https://hdl.handle.net/2077/89249With the implementation of IFRS 16 in 2019, the rules for accounting of leases have changed for all companies reporting under IFRS. This change became particularly significant for companies operating in lease intensive industries. Previously operating leases were reported off-balance-sheet but are now required to be included in the balance sheet. This has led to higher reported lease levels in the balance sheet, increased total assets, higher leverage and worse key financial ratios. The requirement to identify and include embedded leases has further contributed to increased reported lease levels and negative consequences for the companies financial health. To reduce these effects, companies can adjust their financing strategy by purchasing assets or renegotiating their lease agreements into service agreements, in order to reduce their lease levels. This study aims to answer the question: Have publicly listed European companies in the transportation and communication services sector changed their lease levels in relation to total assets as an effect of IFRS 16? To address this question and test the study’s hypothesis that companies lease ratios have decreased as a result of the implementation of IFRS 16, a quantitative method is used. The sample data was retrieved from the database S&P Capital IQ from the period 2016-2019, then exported and processed in Excel. After that, multiple regression analyses and dependent comparison tests were conducted to assess whether the hypothesis could be accepted or rejected. The results show that the lease levels have changed. The ratio of leasing in relation to total assets has increased following the implementation of IFRS 16, contradicting the study’s hypothesis. The study emphasizes this increase could be the changes in the accounting treatment rather than actual changes in leasing behaviour and the results should therefore be interpreted carefully.sweIAS 17IFRS 16LeasingKey Financial RatiosFinancing StrategyCommunications ServicesTransportationText