Research On The Impact Of New Leasing Standards On Aviation Industry Financial Statements

On December 7,2018,the Ministry of Finance of China officially issued the "Accounting Standards for Business Enterprises No.21-Leasing",which indicates that China's leasing standards are officially in line with the international leasing standards IFRS 16.The new lease standard no longer distinguishes between operating leases and financial leases.This change will have a greater impact on the financial statements of enterprises.Since the new leasing guidelines are implemented step by step in China,it can be implemented on January 1,2019 for companies that are listed at home and abroad;for companies that are listed only in China,they must be officially implemented on January 1,2021.Therefore,discussing the new leasing standards is of great significance to the enterprises that have been implemented in China.This article selects China Eastern Airlines,which has a relatively large operating lease and has implemented the new lease standard,to conduct a case analysis to analyze the impact of the new lease standard on China Eastern Airlines' financial statements.First,this article starts with the reasons for the revision of China 's new leasing standards,describes the main content changes of the new leasing standards,and compares the old and new leasing standards.Second,it describes the general situation of the aviation industry in China and the current status of the leasing model of the aviation industry.The impact of the three major statements and financial indicators of Eastern Airlines on the new leasing standard.Finally,suggestions are made on how Eastern Airlines responds to the new leasing standard.Through case studies,this article finds that the new leasing standards have a certain impact on China Eastern Airlines' financial statements and financial indicators.(1)For the balance sheet,the increase in the right-of-use assets and lease liabilities has caused the company's non-current assets and non-current liabilities to rise sharply,the asset-liability ratio and property rights ratio to increase,and the company's debt-paying ability to decline;(2)to the income statement,The depreciation accrued for the right-of-use asset is included in management expenses and selling expenses,and the interest generated from the lease liability is included in financial expenses.As interest decreases as rents decrease,the company's operating profit tends to be lower and higher.The return on total assets and return on net assets decreased,and the company's operating capacity declined.As the right-of-use assets increase,the total assets increase,the total asset turnover rate decreases,and the company's operating capacity decreases;(3)For the cash flow statement,rents paid under operating leases under the old lease standard are included in cash outflows from operating activities,and children's leases The rent paid under the standard is included in the cash outflow from financing activities,and the structure of the cash flow statement has changed.For the impact of the new leasing standards on corporate financial indicators,this article proposes several countermeasures for companies from the aspects of broadening the acquisition of underlying assets,innovating leasing business,strengthening communication and communication,and disclosing leasing information in detail.The decision-makers provide effective information.