The Expected Financial Impact Of IFRS 16 On Southern Airlines And Countermeasure Research

Due to its strong anti-risk ability and large profit,the leasing business has increasingly become an important means for Chinese aviation companies to seek to expand their assets.Domestic airlines have introduced nearly two-thirds of aircraft and engine assets through financing leases or operating leases.At present,the leasing criteria CAS21 and the international leasing accounting standards IAS17 in the Chinese Accounting Standards for Business are classified according to the financial leasing and operating leases for all leasing methods.The main difference between the two is the risk associated with the ownership of the assets.Whether the rewards are transferred or not,for these two situations,different double accounting models can be used.Because the mode of accounting measurement is different,companies may use operating leases to try to cover the essence of corporate financial leasing,hide corporate liabilities,and reduce the company’s asset-liability ratio.After the 2008 financial crisis,the impact of such leasing classifications and related treatments and the results of financial reporting on companies has been widely criticized.In this context,since 2006,the International Accounting Standards Board and the US Financial Accounting Standards Board have joined forces to revise the current current lease accounting standards.In January 2016,the latest version of the International Lease Accounting Standards was issued.-IFRS16.The latest version of the leasing accounting standards,compared with the previous standards,the most important change is to combine financial leasing and operating leasing into one,that is,in addition to the exemption in accounting,the lessee will no longer distinguish between operating and financial leasing.However,it is necessary to confirm the right to use assets of the enterprise and the liabilities arising from the lease,and to list the operating lease contract signed by the enterprise in the balance sheet.The impact of this practice on the financial position of the enterprise is almost the same as that of the financial lease.This article takes China Southern Airlines as a case to analyze the problems that may need to be solved when applying IFRS16 in the future,so as to find out the supporting measures to deal with these problems.