Analysis Of The Expected Impact Of IFRS16 On Hainan Airlines

As an important means of corporate finance,the modern leasing industry took the lead in the United States after World War II.Under the background of the time when it was overdue,the modern leasing industry developed rapidly.Therefore,The IASB issued the current lease accounting standards based on the prevailing leasing standards of FASB.However,the accounting standards for leasing transactions have always been criticized by the international community.The existing guidelines strictly distinguish between the two leasing modes.Fixed assets leased under operating leases are not required Listed in the balance sheet but only disclosed in the notes to the statements,this also makes the operating leases into a means of financing off-balance sheet companies.Investors can not see comparable and truly transparent financial statements.And international markets are even more troubled by “off-balance-sheet financing”To address this issue,the IASB and FASB initiated a joint revision of the leasing guidelines.In the course of ten years,the two designated agencies continuously solicited opinions from the outside world and released their draft for solicitation twice in 2010 and 2013.During this period,the two agencies also held hundreds of conference guidelines,And finally released two IFRS16 and ASC42 in 2016 respectively.Determine the "right to use model" as the basis of the lease accounting treatment.When a leasing transaction occurs,the lessee should confirm the leasing transaction as a right-of-use asset and a use-right liability separately as the balance sheet,which is very important for preventing off-balance sheet financing due to operating leases The role of a more realistic,transparent,comparable financial statements,to make cautious investment decisions for investors has far-reaching significance.China's leasing market started in the 1980 s.Although it started late,it has developed rapidly.For air transport companies like Hainan Airlines,leasing is not only a means to introduce fleet expansion,but also a very important financing method.Under the general trend of convergence with international accounting standards,China has also issued the "Enterprise Accounting Standards No.21-Leasing"(Draft for Comment),which is a very serious challenge for the leasing industry,especially the lessee.Firstly,the paper analyzes the current background of the current lease criteria,the main accounting treatment and the existing defects.Then elaborated and evaluated the background,main contents and deficiencies of IFRS16.Secondly,taking Hainan Airlines as a case background,it analyzes the causes of the leasing status of the air transport industry,and further analyzes the difference between the existing standards and IFRS16 in the presentation of the leasing business and the presentation and disclosure of financial statements.The impact of the new lease criteria on Hainan Airlines,and make recommendations for response.