The Impact Of New Leasing Standards On Airline Financial Reporting And Performance

As enterprises use the division of operating lease and financial lease in International Accounting Standard No.17-Leasing(IAS 17)to restructure contracts,resulting in off-balancesheet financing,the academic community in the industry has always had many opinions on IAS17.In 2016,the IASB issued International Financial Reporting Standard No.16-Leasing(IFRS16).In 2018,the Ministry of Finance issued new leasing standards(new CAS 21)along the direction of reform of IFRS 16,and stipulated that enterprises listed both at home and abroad shall come into force as of January 1,2019.Compared with the old lease criteria,the biggest change of the new lease criteria is to integrate the operating lease and financial lease.This means that except for accounting exemptions,the lessee will no longer distinguish between operating lease and financial lease,and must list the operating lease contract signed by the enterprise in the balance sheet,and confirm the right to use assets and lease liabilities of the enterprise.As a major leasing company,the implementation of the new leasing standards will inevitably have an important impact on the airline.As one of China’s three major aviation groups,Air China’s asset-liability ratio has been kept at a relatively low level among the three major aviation groups.Studying the changes before and after the implementation of the new lease standards is of great significance to the entire industry.As a major leasing company,the implementation of the new leasing standards will inevitably have an important impact on the airline.As one of China’s three major aviation groups,Air China’s asset-liability ratio has been kept at a relatively low level among the three major aviation groups.Studying the changes before and after the implementation of the new lease standards has important reference significance for the entire industry.Therefore,this paper chooses Air China as a typical case to study and China Southern Airlines as a comparative case to compare the changes in financial statements and financial performance of airlines before and after the implementation of the new lease standards.Through comparison,it is found that the implementation of the new lease standards will worsen the financial indicators of airlines,reduce the financial performance of enterprises and increase the financial risks of enterprises.Finally,according to the calculated data,this paper puts forward some suggestions for enterprises to deal with the new lease criteria.