The Expected Impact Of Reformation Of International Lease Accounting Standard On Chinese Airlines

Enterprises have restructured contracts to form off balance sheet financing relying on two models in IAS 17,which has been criticized by industry and academia.In January 2016 the International Accounting Standards Board issued the "International Financial Reporting Standards 16:Lease"(IFRS 16)which set the "Right of use model" as basic concept and make large changes on the lessee model,lease definition and scope.This paper reviews the historical development of international lease accounting standards and the formation process of IFRS 16.On this basis,this paper analyzes and comments on IFRS 16,the ED of Chinese accounting standard No.21 issued in January 2018.Then based on the introduction of the civil aviation industry and aircraft lease industry,simulation application of IFRS 16 is used in China Eastern Airlines and the impact is expected to be formed.According to the theoretical analysis and problems in simulation application and influence,the paper proposed convergence criterion to accouting standard setting body,airlines and aircraft lease industry.Research shows that reform in lessee of IFRS 16 reflects the essence of economic essence,improves the quality of financial statement information obtained by user,effectively increases the comparability of information and financial information decision usefulness in some parts,and reflects the rights and obligations of the lease for both sides.But there are still some issues need to be optimized.The ED of Chinese accounting standard No.21 is generally consistent with the IFRS 16,only slightly different in some details of the process.By summarizing the civil aviation industry and aircraft lease industry,the paper simulates the application of China Eastern Airlines.We can see that the future of our national civil aviation industry is broad,but the competition is increasing.Airlines need to consider the cost control and business strategy more carefully when they import the aircraft.IFRS 16 can promote airlines to consider the importation of aircraft from the perspective of cost control and operating requirements,without interference from outside financing opportunities.Under the impact of IFRS 16 on the civil aviation industry,Chinese standards setting body,aircraft lease industry and airlines should actively participate in the formulation of the standard and reply to the impact of the new standard.