Research On The Financial Impact Of New Lease Standards On COSCO SHIPPING Holdings

Since the 2008 financial crisis,the shipping industry has been in a downturn for a long time.In recent years,the development of the shipping industry in my country has entered a new stage.Leasing,as an important way to achieve financing and expand the scale of business operations,has gradually been used by Chinese companies.Accepted.At present,leasing has become a key economic development industry supported by the state,and it is also a component of the modern service industry.It is an important source of power for the country to reduce its asset-liability ratio,promote economic restructuring,and industrial transformation and upgrading.The implementation of the new leasing standard CAS21-Accounting Standards for Business Enterprises No.21-Leasing will enable my country’s shipping industry to be further reformed and developed.The important change of the new leasing standard is the realization of the "two leases" of lessees that are convergent with the international leasing standards.All assets acquired through leasing need to be included in the corresponding items of the balance sheet,which will undoubtedly increase the leasing business.The debt-to-asset ratio,due to the relatively high debt-to-asset ratio of the shipping industry,will inevitably delay the realization of the State Council’s requirement to reduce the asset-liability ratio of state-owned enterprises by about 2 percentage points from 2017 to the end of 2020.In addition,changes in the leasing business will also have a greater or lesser impact on a number of indicators in the financial statements.Therefore,the importance of leasing business in the development of the shipping industry cannot be underestimated.This article will conduct a case analysis of COSCO Shipping Holdings Co.,Ltd.,a leading company in the shipping industry,estimate the company’s minimum lease payments based on relevant data disclosed by COSCO Shipping Holdings,and restate the company’s 2018 financial statements.Compare the impact of the new leasing standards on the three major statements of the company and the changes in its notes and financial ratios before and after the implementation.Through the risk assessment of the F-score model and the analysis of financial indicators,the company’s potential financial impacts are explored,and COSCO SHIPPING Holdings will face Challenge,put forward the financial impact response strategy after the implementation of the new leasing standard,and provide reference and reference for corporate managers and the shipping industry.