| On Dec.13th,2018,the Ministry of Finance issued the Accounting Standards for Enterprises No.21-Leasing,for which the short name is CAS 21.The draft converges to the relative provisions of the International Financial Reporting Standards No.16-Leasing intrinsically.Namely,CAS21 turned to employ the in-balance-sheet accounting model instead of the double standardized accounting model of distinguishing the financial leasing within the Balance Sheet from the operational leasing beyond the Balance Sheet,which was similar to the current financial leasing accounting model.Since the industries of aviation,retailing,tourism,transportation,telecommunication,and energy mostly rent assets of big amount for a long time,it is predicted that CAS21(revision)and IFRS 16 will influence these industries to a great extent.This essay is aimed at analyzing the problems Air China will face when it employs IFRS 16 and providing some possible measures to deal with the problems by taking Air China as an example and studying the relevant old and new accounting theory.Previous studies generally analyze IFRS 16's influence on lessees',financial statements,financial indexes,and tax burden,focus on Spring airlines and China Southern Airlines when it comes to aviation industry.And nearly all of them only study IFRS 16's influence on a single and unique company and rarely propose a analyzing process which can be imitated by other companies which rely on financial leasing as well.Meanwhile,the mail measure to deal with the influence created by IFRS 16 is to employ operating leasing wisely.The innovations of this paper lie in:(1)it deeply analyzes and discusses the effecting mechanism of the lessees'application of IFRS 16 on balance sheet,profit statement and cash flow statement,which can be extended to analyze the impact of IFRS 16 on other enterprises;(2)besides aviation enterprises,this essay also extends the measure to industries of retail,tourism and leisure,transportation,telecommunications,energy and so on.This paper will sort out the changes of leasing accounting standards,describe the latest revised version of leasing accounting standards proposed by the Ministry of Finance and IFRS 16 that will be implemented immediately,distinguish between financial leasing and operating leasing,and then take Air China as an example to analyze the impact of the new standards on enterprises,Accordingly,it will analyze the measures that aviation enterprises can take,and finally take the actual situation of other industries into consideration to extend the measures those enterprises that rely on leasing.The purpose of this paper is to analyze the affecting mechanism of IFRS 16 on enterprises and explore the corresponding measures that enterprises can take.It is expected to find out that the financial statements,financial indicators and tax burden of Air China will be affected by the application of the new standards.Accordingly,enterprises can take measures to inform the financial reports'users of the change of leasing rules,reduce operating lease in advance,rationally utilize the exemption provisions in the new regulations under the help of leasers,hold enough cash flow,broaden financing channels,and so on.The research value of this essay is to analyze the impact mechanism of the new international leasing standard IFRS 16 on the leasee enterprises.The practical significance of this study is to provide the leasing-dependent enterprises with the analyzing method of the impact of IFRS 16,as well as the suggestions to deal with the new leasing accounting standards. |
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