The Impact And Economic Consequences Of The Implementation Of Cas21(2018) On The Financial Statements Of Chinese Airlines

CAS21(2006)requires the lessee to classify the lease business into two types on the lease start date based on whether the risk-reward related to the leased asset is transferred: operating lease and financial lease.The accounting treatment results in the same leasing business that can adopt two completely different accounting treatment methods.The difference in accounting treatment gives the financial personnel a subjective choice.The accounting treatment of operating leases is also likely to cause off-balance sheet financing problems.The off-balance sheet disclosure of leasing business causes the assets and liabilities of leasing to be underestimated,and the financial report does not show the real financial situation of the enterprise.In December 2018,the ministry of finance revised and issued CAS21(2018),which is similar to IFRS16 but different from CAS21(2006).The core change of CAS21(2018)is canceled the separation of two rent accounting approach,implementation of "the unity of" two rent a single model,in addition to the leasing business and relatively small lease period shorter than 12 months rental business,the lessee should be treated the same as the financing lease way operating lease business,to be capitalized in the balance sheet.This requires the lessee to put almost all the leasing business on the balance sheet,and CAS21(2018)curbs the off-balance sheet financing of enterprises through operating leases.Lease accounting standards change for airlines have a large number of aircraft operating leases will produce a great impact,In order to analyze the impact of the implementation of CAS21(2018)on the financial statements of Chinese airlines and the economic consequences,this paper firstly sorts out relevant domestic and foreign literature to understand the development of lease accounting and explore the reasons for the revision of lease standards.Then by comparing CAS21(2006)and CAS21(2018),described the main changes of CAS21(2018)in our country three airlines for the case study sample,according to the requirement of CAS21(2018)of three airlines 2017 annual report data to adjust,find CAS21(2018)will enable airlines,financial and accounting information quality has improved,but the negative impact on financial performance indicators,which may lead to airline investment decisions,financing and tax behavior will be adjusted,so as to adapt to the implementation of CAS21(2018).