The Analysis Of How The Change Of International Lease Accounting Standard Influences Cosco Shipping Holdings Co., Ltd.

With the development of economy,more and more corporations select to produce and finance by leasing.However,how to measure the leasing business is a hot topic of debate.According to the current lease accounting standard,the leasing business can be classified by operating lease and financing lease The operating lease is not recognized as the asset and liability in the financial report,so it is easy for the lessee to manipulate the financial reports and the vast off-balance-sheet liabilities arise.After the financial crisis in 2008,people pay more attention to the problems aroused by the operating lease.In 2016,the IASB?International Accounting Standards Board?released IFRS 16 Leases?International Financial Reporting Standards 16——Lease?.In this standard,the leasing business of the lessee will not be classified into two kinds of lease,and the“right to use”model is used.On 8^th January,2018,the finance ministry released the CAS 21 draft?Corporate Accounting Standard No.21——Lease?Amendment??Draft??.The content of this draft is almost the same with IFRS 16,which will significantly influence the relevant corporations in China.In this paper,COSCO SHIPPING Holdings Co.,Ltd.is taken as the case to analyse the influences of IFRS 16.The findings of the study includes:?1?After the implement of IFRS 16,the non-current assets and liabilities of the firm increase dramatically and the operating profit and net profit also rise owing to the more rental expenses in the near future years.But the total net cash flows do not change.?2?The decision about how to have the ships will be made only considering the financial costs.IFRS 16 will also affect the corporate taxes and share prices,increase the financial risks and complex the accounting measurement.?3?The firm should deal with the change of the lease standard actively from the aspects of operating and financing strategies,risk management and internal control.