The magnitude and relevance of impairment losses on account receivables at Euronext Lisbon companies

• Autor(a) principal: Neves, Daniela
• Data de Publicação: 2019
• Outros Autores: Carvalho, Carla
• Tipo de documento: Artigo
• Idioma: por
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: https://doi.org/10.34624/ei.v0i16.1171

The main goal of this study is to analyze the evolution of the magnitude and relevance of impairment losses on account receivables at Euronext Lisbon companies, given the recent financial crisis that has devastated our country. The study follows a longitudinal approach, based on the direct collection and content analysis of consolidated financial statements of the Euronext Lisbon listed companies, from 2005 to 2014.From the empirical study, we’ve concluded that the impairments on accounts receivable have a greater magnitude as well as greater relevance in the financial statements during crisis periods. We also concluded that the smaller companies recognize more impairments when compared to the biggest ones. We also found big bath practice indications, because it was mainly in the worst financial performance years that the recognition of impairment losses on receivables affected negatively the companies’ results.