A Case Study On The Impact Of The New Leasing Criteria On Hainan Airlines’ Leasing Business And Performance

The Ministry of Finance promulgated the new leasing guidelines in December 2018,and HNA will soon implement it in 2021.According to the new lease standard,the lessee needs to adopt the "right-of-use model" for measurement,and requires the lessee to confirm the lease liability and the right-of-use asset in the balance sheet,effectively solving the off-balance sheet financing phenomenon of operating leases.However,the implementation of the new leasing standard has a huge impact on listed airlines that rely on operating leasing business,so studying this issue has both theoretical and practical significance.Therefore,this text studies the changes in accounting recognition,measurement and presentation of airlines applying the new leasing standards and how to deal with financial risks.Based on the research on the background and literature of the revision of the new leasing standards,the research methods using case analysis are used.,To explore how the new leasing standards will affect Hainan Airlines’ performance.First,the research background and significance of this article are explained,the research literature at home and abroad is combed and summarized,the writing idea of this article is determined,and the research method is clarified.Combining the definition of leasing,the aviation industry and related theoretical foundations to explain the concept of aviation leasing,and focus on the changes in the new and old leasing standards;secondly,the current operating status of HNA will be introduced,based on its leasing status and the 2019 financial report,the relevant.The operating lease business is re-accounted for the accounting confirmation,measurement and presentation process,based on the simulation results of the previous paragraph,the changes in financial indicators before and after the restatement of the statement are compared and analyzed,and the impact of the new lease standard on the performance of the company and the financial risks faced;finally the above based on the analysis and summary,HNA puts forward feasibility suggestions on how to deal with the new leasing standards.The study found that the implementation of the new lease standards can improve the comparability of lease information,enhance the transparency of accounting information,and thereby improve the quality of corporate accounting information.However,the continuous weakness of related financial indicators in the short term affects the financing capabilities of the company and aggravates financial risks.According to the relevant provisions of the new lease standards,in the accounting treatment,due to the initial measurement of right-of-use assets and lease liabilities,the accrual of interest expenses and asset depreciation,resulting in high profits and low profits,making the company’s solvency and profitability Weakened,is not conducive to performance evaluation.Airlines are likely to reduce the proportion of existing operating leasing businesses and instead adopt financial leasing to introduce aircraft.Based on the above analysis,the following suggestions are made for Hainan Airlines to respond to the changes in the standards: strengthen the study of the new standards,optimize the lease management system,and improve the aircraft leasing model to actively respond to the financial impact of the new lease standards;adjust the financing structure to improve Own profitability to ensure the smooth implementation of the new standards.