Analysis Of The Financial Impact Of IFRS 16 On China Southern Airlines

Leasing is a common business mode in modern commercial activities,but the existing accounting standards for leasing have been criticized by stakeholders for their shortcomings.The call to amend the current lease accounting standards has never been interrupted.IASB and FASB jointly issued a draft on the lease guidelines in 2010 and 2013,and issued a new international lease criterion IFRS 16 in January 13,2016,which will be formally implemented in January 1,2019.The IFRS 16 standard uses the model of the right of use,which eliminates the possibility that the operators can finance outside the table by operating lease.The quality of financial information has also been improved compared with the previous criteria.In January 8,2018,the Ministry of finance of China issued the accounting standards for enterprise No.twenty-first-lease(Revision)(Draft),which is consistent with the IFRS 16 standard in the big direction.This paper takes IFRS 16 as the research object,and uses literature research,case analysis,induction and other methods to study it.First,this paper introduces the revised background of IFRS 16 standard,and expounds the reform content of IFRS No.16 standard from the aspects of lease identification and division,lessee,lessor,conversion period handling principle,after sale and renting and so on.Secondly,based on the content of this reform,based on the data of the 2016 annual report of Southern Airlines,the possible changes in the financial statements after the implementation of IFRS 16 of Southern Airlines are simulated.After analyzing the relevant data,the following conclusions are drawn:first,after the implementation of standard IFRS 16,the assets and liabilities of southern airlines have increased.The total profit and net profit have declined,the net cash flow of financing activities has decreased,and the net cash flow of operating activities has increased.The two is that the short-term debt paying ability of Southern Airlines is enhanced,and the long-term solvency,operating efficiency,profitability,and development ability have declined,and have some influence on the operation and strategy of Southern Airlines.Therefore,this paper puts forward the corresponding countermeasures,that is to suggest that the new guidelines should be actively concerned about the preparation of the new standards,adjust the future lease mode,improve and improve the internal control,and strengthen communication with the parties.