Impact Of New Leasing Standards On Airlines And Response In Financial Strategy

On December 7,2018,the Ministry of Finance officially released the latest revised lease guidelines.The core change of the new lease standard is that it no longer distinguishes between operating leases and financial leases,but recognizes right-of-use assets and lease liabilities in the financial statements.Faced with the adjustment of the new leasing standards and the impact of the domestic and international economic situation and epidemic situation,airlines should actively respond.The airlines listed at home and abroad have already implemented the new standard on January 1,2019.Therefore,exploring the financial strategy of such airlines can provide other airlines with the new standard from January 1,2021.The company puts forward experience for reference and takes measures in advance to deal with the adverse effects.Therefore,this article starts research based on the new leasing standards and selects Air China,which has implemented the new standards,as a case.The core issue is to study the impact of the new leasing standards,and then put forward suggestions on how to deal with the financial strategy of Air China.This article first simulates the financial data of Air China in 2018 using the new standard,and uses 2016 and 2017 data as auxiliary support to explore the impact of the new leasing standard on the financial statements and major financial indicators,and at the same time use the real data that occurred in 2019 Conduct conclusion verification;and then further explore the impact on risk management and future leasing business.Secondly,split the relevant elements of operating leases,and examine the impact of changes in the lease term and discount rate on the financial statements.Finally,from the financing strategy,investment strategy,cost control strategy and profit distribution strategy to China Air China and other stakeholders to propose suggestions.The research conclusions of this paper mainly include(1)after the application of the new standard,the main financial indicators of Air China deteriorated,including the increase in the asset-liability ratio and the decrease in asset turnover rate;(2)due to the change in leasing standards,Air China began to gradually adjust the aircraft The introduction model of assets reduces the proportion of operating leases;(3)The lease term and discount rate will affect Air China 's financial performance and can be adjusted in a targeted manner;(4)In order to cope with the impact of the new leasing standards and the macro environment In addition,Air China needs to optimize its financial strategy,including increasing investment in aircraft purchased through self-purchase or financing leasing,adjusting operating lease business models,improving financing methods,strengthening cost control,and reducing cash dividend distribution.Through the research in this article,systematically sorting out the new leasing standards,including the main contents of the new standards and comparing the new and old leasing standards,can enrich the theoretical research on the new leasing standards to a certain extent.At the same time,on the one hand,it studied the impact of a specific element of an operating lease on the financial situation,so as to help the company to make adjustment choices to deal with it;on the other hand,because the implementation time of the new leasing standard was adopted "step by step",through the financial strategy of Air China The analysis can provide relevant reference significance for domestic listed companies to adjust their financial strategies to respond to standards and environmental changes.