Analysis Of The Expected Impact Of The New Lease Criteria On China Airlines And The Countermeasures

In December 2018,in order to follow up the international accounting standards and further improve the transparency of enterprise leasing information,the Ministry of finance,as the leader in formulating China’s accounting standards,promulgated "China’s accounting standards for Business Enterprises No.21-leasing(Amendment)",which is today’s new leasing standards.According to the provisions of the new standards,companies listed at home and abroad and adopting international accounting standards should implement the new leasing standards from 2019,while other enterprises should implement the new leasing standards from January 1,2021.According to the nature of their listing,the three major Chinese Airlines(Air China,China Eastern Airlines and China Southern Airlines)have taken the lead in implementing the new leasing standards,which has an expected impact on other civil aviation airlines with the significance of reference,this paper selects China Airlines as the analysis object,and deeply studies the impact of the new leasing standards on its expected financial indicators.In this paper,the expected impact of China Airlines is as follows: the new lease criteria will increase the right to use assets and lease liabilities of enterprises,and then affect the balance sheet;interest expense will affect the income statement of enterprises;cash flow statement has no substantial change.The related solvency,operation ability and profitability have declined,the financial situation has deteriorated,and the stock value has declined.Based on the above research results,this paper further puts forward countermeasures and suggestions: in terms of leasing business,the company can consider appropriately adjusting the lease term and payment method,cooperating with SPV mode or purchasing aircraft directly,distinguishing leasing business and service business;in terms of company operation,the company can consider expanding the business scope of the company group,relying on the purchasing mode of institutional capacity to promote the combination of cadres and expenses,and increasing the number of employees The heavenly stems and Earthly Branches of the strong enterprises are being referred to.According to the existing countermeasures of the three major airlines,the company can consider buying aircraft to optimize the fleet structure,develop the route network with trunk branch lines and take the advantage of "Internet plus".The innovation of this paper lies in the following three aspects: it can timely learn from the aviation leasing information of the three major airlines that have implemented the new leasing standards to analyze China Airlines;the article gives China Airlines certain assumptions to make it reflect the modification of the leasing standards higher;the article has great reference significance for the leasing business of private enterprises,and China Airlines has a higher proportion of leasing as a research object,it has a higher sensitivity of criteria,and can better reflect its commercial value.