A Study On The Financial Impact Of New Leasing Standards Of Chinese Shipping Companies

With the continuous innovation and development of the leasing business,the original leasing standards have been unable to meet the relevant requirements of the existing business,and it is impossible to accurately disclose the financial status,operating results,cash flow and other information of the enterprise.As a result,the International Accounting Standards Board issued IFRS 16 Leases and impleme nted them in 2019.China’s Ministry of Finance also followed closely,and through extensive consultations with representatives from enterprises,accounting firms,academia,etc.,on December 7,2018,the "Accounting Standards for Business Enterprises No.21-Leasing"(hereinafter(Referred to as the "New Lease Standard ").The new leasing standards require companies that are listed at home and abroad to be fully implemented in 2019,and companies that are listed only in China will be ful y implemented in 2021.The implementation of the new standard will have a significant impact on industries such as transportation,retail,telecommunicatio ns,energy and facilities.As an important company in the transportation industry,shipping companies,because of the large scale of operations and the need for large amounts of funds,it is not realistic to obtain all the assets required by the company through procurement.Therefore,important assets are obtained through leasing-the right to use the ship is shipping A universal choice for companies.The implementation of the new leasing standards will affect changes in the financial data of Chinese shipping companies,bring different financial information to users of the statements,and affect the operating strategies of Chinese shipping companies.How the implementation of the new leasing standards will affect the shipping company’s financial statements and financial indicators is the issue studied in this paper.Based on the literature review and the concept appraisal,this paper uses the information asymmetry theory,principal-agent theory and lease right theory to make a comparative analysis of the changes in the financial performance of Chinese shipping companies in implementing the new lease standard.Since the new leasing standards have been implemented in 2019,in order to study the impact of the new leasing standards on shipping companies,this article selects COSCO SHIPPING as a case study company.By analyzing the changes in the company’s financial statements and financial indicators before and after the implementation of the new leasing standard,it was found that under the new leasing standard,COSCO SHIPPING’s profitability and growth capacity performed well,but its operating capacity and debt service performance declined.In this regard,this article believes that COSCO SHIPPING ’s acquisition of ships through financing lease after implementing the new standard is a lower cost and more efficient option.At the same time,the company can also adjust the payment method of the lease fee according to actual needs,To obtain better income in the short term or postpone the payment of income tax.Finally,this article recommends that China’s shipping companies make changes in advance in order to respond to the changes in the standards,adjust operating and financing strategies in a timely manner,timely debug the financial system,train accounting personnel,and re-plan the company’s tax payment.