Research On The Financial Impact And Countermeasures Of The Implementation Of The New Leases Standard On China Southern Airlines

With the continuous development of economy,leasing has played a more and more important role in heavy assets industry.Financial leasing has become the second largest financing method in the international capital market after bank loans.However,the continuous development of leasing business has exposed the drawbacks of accounting treatment on operational leasing under the original leasing standards.With the dual purpose of solving the problems caused by original leasing standards and convergence with international accounting standards,Ministry of Finance in China released the latest revised leasing standards,which came into force on January 1,2019.Under the new leasing standards,as for lessees,the operating leases need to be recognized as assets and liabilities,and the off-balance sheet financing advantage no longer exists.This change has brought a great impact on the leasing business,especially the industry with a large scale of operating lease.It is of great significance for enterprises to implement and deal with the impact of the implementation of the new lease standards better,as well as their decision making and risk management.This paper takes China Southern Airlines as the research object to study the impact of the implementation of the new leasing standards.It is found that unit value of a single airplane is high which needs a lot of financial support to buy directly.In short of money,aircraft that company introduce through operating leasing is enormous in size and amount;Besides,the operating lease can meet the requirements of flexible leasing and can also beautify the balance sheet.However,the implementation of the new lease standards has an important impact on the company’s capital structure,cost and expense and financial risk: the listing of operating leases leads to the increase of the scale of assets and liabilities and thus deteriorates the capital structure;Cost front in the short term drag the company’s performance,resulting in a false decline in profitability;Deterioration of key financial indicators increases the difficulty of financing,and the amplification of exchange rate sensitivity further aggravates the financial risk of enterprises.Finally,in order to reduce the pressure of operating lease,strengthen the integration of industry and finance,strengthen risk management and reduce the cost of coordination,this paper puts forward specific countermeasures from the perspective of accounting management,business management,risk management and enterprise internal management,so as to reduce the negative impact of the standard reform and improve the quality of enterprise development.The research of this paper shows that the new lease standards can improve the quality of accounting information,reduce information asymmetry and improve the decision-making efficiency.However,due to the large impact brought to enterprises after the implementation of the standards,compliance costs are impossible to avoid.Therefore,enterprises need to make relevant adjustments positively and interact with external institutions timely,so as to deal with the impact of new leases standards better.