Research On The Impact Of The New Lease Standard On The Retail Industry And Its Economic Consequences

Leasing is a common way for modern enterprises to obtain the right to use assets.Old leasing standards are often used for off-balance-sheet financing by enterprises because they divide the leasing business into operation leasing and financing leasing and adopt totally different accounting methods.With the outbreak of financial crisis,the problem of off-balance-sheet financing has been paid more and more attention.For this reason,the IASB promulgated the new leasing standard IFRS 16 in 2016,and China also revised and issued the new leasing standard CAS 21 in 2018.In the new leasing standards,the important change is to capitalize the operating lease,not to divide the operating lease and financial lease,but to include all leases in the scope of financial reporting.This will have a tremendous impact on the relevant industries.The daily operation of the retail industry needs to operate and rent a large number of houses and buildings as stores or warehouses.Because of the large scale of lease and the high value of assets under lease,the introduction of new lease criteria will have a significant impact on enterprises.In this dissertation,Yonghui supermarket is selected as a case study.As domestic listed enterprises only implement the new standards since January 1,2021 and the annual report in 2019 has not been released yet,the financial statements of Yonghui supermarket are restated based on the financial data in 2018 according to the new leasing standards.By comparing the financial data of the new and old leasing standards and analyzing the changes of key indicators,we can get the impact of the new leasing standards on the business value and the financing and investment behavior of enterprises.After demonstration,it is found that the new leasing criteria will increase the scale of assets and liabilities,reduce the profit during the early stage,and change the internal structure of cash flow;at the same time,the relevant financial indicators of the enterprise will deteriorate,the value of the enterprise will decline,and the rise of credit risk will increase the financing difficulty of the enterprise,so the investment behavior of the enterprise will also be affected as well.Finally,this dissertation analyzes the applicability of the case conclusions,and puts forward specific suggestions for the impact of the new leasing criteria on retail industry.