Research On The Influence Of New Lease Standards On Retail Enterprises In China

Chinese new lease standard,Enterprise Accounting Standard No.21—— Leasing,was officially issued in December 2018,which stipulates that enterprises listed at the same time inside and outside China and enterprises listed abroad and adopting International Financial Reporting Standards will implement the new lease standards on January 1,2019;other enterprises will implement the new lease standards on January 1,2021.The new lease standards will be changed to the former two categories of operating lease and financial lease,using a single use right model for accounting.The operating lease business is also included in the financial statements,which makes up for the deficiency of off-balance-sheet financing brought by operating lease in the original lease standards,and makes the financial information of enterprises more true and reliable.Retail is one of the industries most affected by the changes in the new lease standards.According to the classification of the SFC industry,the financial reports of90 A listed retail enterprises in Shenzhen and Shanghai have been consulted,and it is found that 98% of the retail enterprises have not yet implemented the new lease standards,so it has certain timeliness and practical significance to analyze the impact of the new lease standards on retail enterprises.This paper selects Beijing Hualian,a representative retail enterprise in China,as the case analysis object,based on the financial data of Beijing Hualian 2018,and restates its lease related accounting treatment and financial statements according to the provisions of the new lease standards.Comparative analysis of new lease criteria and original lease According to the financial data under the lease standards,it is estimated that Beijing Hualian will be affected,and the countermeasures taken by Beijing Hualian are analyzed and supplemented with other feasible countermeasures,so as to provide reference for the vast number of retail enterprises that have not yet implemented the new lease standards.The new lease standards will mainly affect the financial information,information quality and business behavior of retail enterprises.It is found that :(1)The assets and liabilities of Beijing Hualian’s comprehensive excess balance sheet are greatly increased,the lease fee is reduced,the financial expenses are greatly increased,the operating profit is converted into a loss,and the total amount of cash flow statement is adjusted internally but unchanged.(2)The asset-liability ratio of Beijing Hualian has increased obviously,and the indexes of profitability,solvency and operating capacityhave weakened.(3)The change of financial information makes the leasing business of Beijing Hualian truly reflected.The new lease standard will greatly improve the quality of accounting information and increase the authenticity and availability of accounting information.(4)In order to reduce the impact,Beijing Hualian will adjust its business behavior,such as selling inefficient assets to increase profits and reduce future losses;changing "rent" to "buy" to alleviate the increase in asset-liability ratio and the change in related ratio;acquiring fine assets to adjust the business structure of enterprises;and setting up new subsidiaries to discover new profit growth points and re-lay out future development strategies.Enterprises can reduce the impact of the new lease standard through some measures,the case of Beijing Hualian through rent on behalf of buy,adjust the business structure,set up new subsidiaries to enhance profits,reduce the impact.In addition,this paper also puts forward some other feasible countermeasures,such as enriching lease form,strengthening tax management,perfecting financial information system.These measures can be used for reference by the vast number of retail enterprises that have not yet implemented the new lease standards and have universal applicability.In the case that most retail enterprises have not yet implemented the new lease standards,it has a certain timeliness and practical significance to study the impact of the new lease standards on retail enterprises.It is hoped that this study will help retail enterprises that have not yet implemented the new lease standards to understand the various aspects of the impact of the new lease standards and to respond effectively,and help to reduce the impact of the new lease standards on retail enterprises and achieve a smooth transition.