Study On The Impact Of Ifrs16 On The Aviation Industry

In recent years,in China's economic market competition mechanism,the role of enterprise financing is increasingly important,and leasing is one of the main financing channels.As the economy and the leasing industry develop rapidly,the malpractice on accounting measurement requirement of International Accounting Standards17:Lease(IAS17)has been gradually appeared,the current financial statement cannot fully reflects the real lease business situation.For this,the International Accounting Standards Board(IASB)had revised the current lease standard,and released International Financial Reporting Standards 16:leases(IFRS16)on 2016 January 13,which will implement on January 1,2019.In order to better adapt to economic globalization,participate in the international market competition,our country accounting is converging to the international accounting standards.After IFRS16 released,our leasing accounting standard is in adjusting process based on IFRS16.Ministry of Finance has already hereby released "Lease Revision(draft)" on January 11,2018,IFRS16 will have a significant impact to our accounting standards revision,enterprise financial situation and management decision.In this thesis,first of all,the reform of IFRS16 is briefly described,and the differences between IFRS16 and CAS21 are compared and analyzed.Since then,as the background of airlines leasing business,this thesis introduces the development status quo of and the overall application of leasing industry,then,China southern airlines,for example,in accordance with the requirements of IFRS16 happened in 2017 to its operating lease business accounting and analysis of business process change,on this basis to IFRS16 take effect after the two financial statement on the prediction of the differences may be produced.Then,a comprehensive analysis is made on the impact of the lease business accounting and the quality of financial indexes on the leasing decision of the enterprise after the completion of the revision of the lease criteria in China.Finally,some Suggestions are made to airlines in view of the anticipated economic consequences of the revised lease guidelines.Through analysis,it is found that IFRS16's definition of leasing business is more in line with the economic essence of assets,the measurement and disclosure requirements of leasing are more detailed and standard,and the quality of accounting information disclosure of leasing business is improved.After the application of the new lease criteria,the operating costs and expenses are moved forward,the profitability of the enterprise is weakened,and the debt pressure is increased,which brings difficulties to the business financing of the enterprise.However,the implementation of the new standards helps enterprises to consider financial pressure as early as possible,reduce financial risks and hidden dangers,and ensure the long-term operation and development of enterprises.