Research On The Expected Impact Of IFRS 16 On Chinese Airlines

Many enterprises obtain the right to use assets by way of lease,because the lease can reduce management costs and the financial risk.The current International Financial Reporting Standards require that leases should be classified as operating leases or finance leases.The assets acquired by the finance lease do not need to be identified on the balance sheet of the lessee,and the assets acquired by operating leases assets do not need to be reflected in the balance sheet,so that the quality of enterprise accounting information is affected.Finally,decision-making of enterprise is also affected.The International Accounting Standards Board has made a number of roundtable meetings in order to solicit amendments to the accounting standards.After many years of made efforts,they completed the revision of the Lease Accounting Standard.The IFRS 16 has been released on January 13,2016.China currently adopts the Chinese Accounting Standards(CAS),and the CAS 21 and the IAS 17 is essentially the same.Now we still have not yet started work for revision of the CAS 21,but in 2015 the Ministry of Finance of China released Ministry of Finance of China and IFRS Foundation Joint Statement in which can be seen that Chinese Accounting Standards are converged with IFRS.And the use of IFRS has enhanced the quality and transparency of financial reporting.We can foresee the CAS 21 will refer to IFRS 16 to revise.Through the study of this article,the author thinks that the current lease standards have certain defects and reduce the quality of financial statements and violate the principle of decision usefulness of financial statement information.So our country should choose an appropriate time to revise the current lease standards.This article selects three airlines in China as a case.The paper expounds the main changes of IFRS 16,analysis full implementation of new lease standards will be what kind of impact on air transport industry in our country,which would be helpful to air transport industry in accordance with the actual situation in advance to take the countermeasures.Therefore,if Chinese Accounting Standards will be revised and be carried out,the enterprises should take measures according to the present situation of the rental business to promote reform smoothly.As long as we make joint efforts,then the reform of Chinese Accounting Standards can be effectively implemented,so as to promote the rental business and even to contribute to the healthy development of economy.