Study On The Revision Of The Lease Standard And Its Impact On The Performance Of The Aviation Industry

Leasing is one of the main ways for major companies to obtain assets today.The impact on the economies of the world has gradually increased.The leasing accounting standards introduced by various regions have also contributed tremendously to the advancement of the world leasing industry.Chinese original lease standard CAS21 stipulates that leases are classified into financial leases and operating leases according to their nature,and their accounting treatment methods are also quite different.After the global financial crisis,many companies used the corresponding vulnerabilities of operating leases to finance off-balance sheet and whitewash the accurate performance information.After many comments and discussions,the Chinese Ministry of Finance finally issued the latest lease accounting standard(CAS21)in December 2018.The standard canceled the lessee's operating lease model and eliminated the drawbacks of “off-balance sheet financing”.The accuracy of accounting disclosures.So what impact will the new lease standard revision have? How should we deal with it?In view of the above problems,based on the background and literature research,application case analysis and other methods,this paper first sorts out the development process of the leasing industry and leasing criteria,and then compares the difference between the new CAS21 and the original CAS21.This paper then selects the aviation industry as an analytical industry to influence the revision of the guidelines,introduces the aviation industry leasing profile and briefly analyzes the impact of the revision of the guidelines on the performance of the aviation industry.This article takes Chunqiu Airlines,which has a high proportion of operating leases,as a case company.It analyzes the revision of the new CAS21 to make changes in the accounting treatment and the three major statements,and then analyzes the relevant performance changes.Finally,it puts forward feasible suggestions for the impact of the new lease standard on Spring Airlines.The conclusions of this paper are as follows:(1)The implementation of the new lease standard will increase the book value of Spring Airlines assets and liabilities,resulting in an increase in the ratio of assets to liabilities and equity;because the increased amount of liabilities affects the financial costs.The solvency has been weakened.(2)In addition,due to changes in the corresponding accounts of the balance sheet,the total asset turnover rate has affected,resulting in some fluctuations in the efficiency of asset use.(3)The revision of the new CAS21 will also affect the corresponding accounts of cash flow statement and income statement.The cash flow from operating activities and the cash flow from financing activities are mutually converted,but the net amount is less affected;the cost in the income statement is higher and lower due to the accrual of interest expense and asset depreciation,resulting in net assets.Both the yield and the total asset profit rate have declined to a corresponding extent,which in turn has reduced the profitability of company.