Main impacts on the luxury automotive industry due to "Covid-19" and "Russia-Ukraine war" events: analysis of the impairment test

This Thesis aims to analyze luxury car industry in recent years based on the arrangements set out by the “International Accounting Standards” (IAS/IFRS). In particular, it is going to take a closer look to the “Impairment-test” (IAS 36): a drastic and permanent reduction of fixed and/or intangible asset’s value, in the luxury automotive industry. The impact that two different events like the spread of the Covid-19 disease and subsequently the Russia-Ukraine war, had on the industry, are the latest major cause of impairment in the economic sector. In this sense, companies in the luxury sector were among the most affected due to the significant cost to be sustained and the decrease on demand. An empirical analysis will be performed based on Porsche AG's financial statements from 2019 FY to 2022 FY that will be studied and analyzed in order to highlight the effects on total assets if any. They are subsequently compared with the performances of other major competitors such as Aston Martin Lagonda, Ferrari and BMW.