Strategic Asset Acquisition in the Era of EU Sustainability Reporting: Lease Accounting Implications for CSRD and Taxonomy Compliance

Abstract

This paper investigates the impact of evolving EU sustainability reporting regulations on strategic asset acquisition decisions, focusing on the accounting of leases under different accounting frameworks. Employing a mixedmethod approach, the study combines literature review with a detailed case study comparing accounting treatments of leases under different accounting regimes. Results reveal that regulatory requirements for sustainability disclosures and key performance indicators significantly influence whether entities opt for purchasing or leasing assets, as these choices directly affect certain ratios. The findings highlight that divergent accounting standards can lead to material differences in sustainability reporting outcomes, potentially shaping corporate strategies. Academically, the study underscores the need for greater harmonization between sustainability and financial reporting standards, while practically, it offers guidance for organizations navigating compliance and strategic decision-making in the context of sustainability reporting.