A Study On The Impact Of New Leasing Standards On The Financial Strategies Of Chinese Airlines

How to allocate resources,finance and promote long-term and stable development of enterprises through leasing must be an important issue to be studied.Leasing accounting standards regulate the lessee and lessor leasing business accounting treatment and related information disclosure.Due to the continuous innovation and development of the leasing business,the current leasing standards are no longer suitable for the relevant needs of the business,and it is impossible to accurately disclose the financial status,operating results,cash flow and other information of the enterprise objectively and accurately.Therefore,the ministry of finance of China revised and issued accounting standards for business enterprises no.21--leasing(hereinafter referred to as "new leasing standards")on December 7,2018 by soliciting opinions from enterprises,accounting firms,academic representatives and other parties.The new leasing guidelines will be fully implemented in 2021,with significant impact on sectors such as transport,retail,telecommunications,energy and infrastructure.As an important enterprise in the transportation industry,it is unrealistic for an airline to acquire all the assets needed by the enterprise by means of procurement due to its large operation scale and large capital demand.Therefore,it is a common choice for airlines to acquire the use right of aircraft,an important asset,by means of leasing.The implementation of the new leasing standards will affect the change of financial data of Chinese airlines and bring different financial information to the users of financial statements,thus affecting the financial strategy of Chinese airlines.How airlines will change their financial strategies in the face of the implementation of the new lease standards is a question studied in this paper.In this paper,on the basis of literature review,the concept of appraisal,using cost-effectiveness analysis,enterprise value maximization,the time value of money,the information asymmetry theory,principal-agent theory and the theoretical basis for the risk of moral hazard,airlines in China of the common financial strategy from investing strategy,operation strategy,financing strategy three aspects are analyzed,and on China airlines aircraft leasing conditions in the statistical analysis.At the same time,the financial status of Chinese airlines under the old lease standards is analyzed.Since the new leasing standards will be implemented in 2021,in order to study the impact of the new leasing standards on the financial strategic choice of airlines,this paper chooses spring airlines as a case study company.New lease criterion by simulation application,assuming that the spring and autumn airlines in existing leases,change the lease term,change the depreciation policy of three cases,the spring airlines in the past,present and future five years the financial position,operating results and cash flows,the change of financial indicators,found that under the new leasing criterion in the spring and autumn airlines many debt will rise,its short-term and long-term debt paying ability will be decreased;During the lease contract period,the positive and negative effects of the profitability of spring airlines depend on the lease contract and depreciation policy,which may be negative first and then positive.Leasing criterion for spring airlines in the new study,this article take a financing lease or an operating lease,assuming that the lease and lease two new uniform,the condition of model consistent,uniform plane,respectively using financing lease and business lease,comparative analysis of cash flow in two ways,found that the spring and autumn period and the aircraft finance lease a smaller plane present value of cash outflows.Finally,this paper puts forward the financial strategic Suggestions of depreciation policy selection,aircraft leasing mode,exchange rate risk prevention and interest rate risk prevention.Through the case study found that the airline business,if there is an operating lease the aircraft under the new lease criterion its solvency,profitability will be affected by the negative impact of big or small,so will affect the airline's aircraft leasing decisions,airlines for the future investment,financing,operating and financial strategy of dividend distribution will also change.The implementation of the new lease standards will also bring some problems,the need for financial practitioners more professional judgment,this paper also put forward relevant Suggestions and measures for these problems.