The Impact Of IFRS16 On China's Aviation Industry

Leasing is widely adopted as a financing method,especially playing an increasingly important role in aviation,retail and infrastructure industries.The current international accounting standards for the leasing business is divided into operating leases and financial leasing,respectively this approach has been the subject of controversy in the international market.Enterprises often use the advantages of operating lease off-balance-sheet financing,hide the real assets and liabilities,to provide the report users with incomplete financial information.To solve this problem,the International Accounting Standards Board(IASB)and the United States Financial Accounting Standards Board(FASB)jointly revised the International Accounting Standards for Leasing.The IASB announces that IFRS 16 came into effect on January 1,2019,in place of IAS 17.Based on the literature review of the leasing guidelines from academia and business circles,this paper introduces the domestic and international leasing standards in the development of criteria,theoretical research and application of relevant achievements,summarizes the current status of leasing accounting research,and briefly describes the relevant theory.Secondly,combining with the revision course of the new leasing guideline,analyzing the defects of the current leasing guideline,combing the main revisions of the new guidelines on the accounting treatment of the lessee from the four aspects of confirmation,measurement,presentation and disclosure,at the same time,aspects of the new guidelines may affect the aviation industry.Then,the paper introduces the status quo of aircraft leasing in the domestic and international aviation industry,selects Spring Airlines as the research object,adjusts its 2016 financial statement data according to the accounting treatment of the new standard,observes and compares financial data such as assets,liabilities,expenses and profits and related financial indicators and analyzes the impact of the new international leasing guidelines on the operating,solvency and profitability of Spring Airlines.Finally,according to the full text of the analysis with case studies,put forward feasible suggestions for aviation enterprises to cope with the new guidelines.The following conclusions can be drawn from the comprehensive research:(1)the accounting treatment of operating leases under the existing standards gives the enterprises the space to manipulate the types of leasing and the glossary of the reports.IFRS 16 achieves "two leases and one",which can reflect the real asset-liability scale and financing of the enterprise;(2)The implementation of the new standard will have a certain impact on the aviation industry,and aviation enterprises need to take precautions to clarify the impact of the new standard in advance;(3)IFRS 16 will allocate the operating lease internalization of the table,increasing the assets and liabilities of aviation enterprises,changing the corporate profits and the financial indicators in terms of debt service,operation and profitability,the aviation enterprises need to make corresponding adjustments to deal with the new guidelines.