IFRS Application During the COVID-19 Crisis and Recovery: A Comparative Analysis of Accounting Treatments and Disclosure Practices in German Automotive Companies (2019-2023)

Abstract

This thesis examines how Volkswagen Group and BMW Group applied IAS 2, IAS 36, and IFRS 8 in their consolidated annual reports during the COVID-19 crisis and the recovery period between 2019 and 2023. Using a qualitative comparative case study based on content analysis of the published annual reports, the study analyses disclosure practices and calculates three size-independent ratios — the write-down ratio, the impairment ratio, and the operating margin — to compare the two companies. The findings show that despite operating under the same IFRS framework, the two companies followed different patterns in their accounting outcomes and disclosure practices, with Volkswagen providing more detailed disclosures in several areas and BMW showing a stronger operating recovery. The thesis concludes with practical disclosure-related recommendations for each company.