Study On The Financial Impact Of New Lease Standards On Airlines

As an important indirect financing channel,financial leasing has been growing in recent years,and China’s leasing market is now the second largest in the world.IAS17 was issued in 1982,and its problems have been continuously exposed with the development of the market economy.A large number of leasing businesses are classified as operating leases by enterprises and are not reflected on the balance sheet,which facilitates off-balance sheet financing;the financial status of the lessee cannot be truly reflected,and the comparability of accounting information is reduced;information disclosure is incomplete,and statement users Unable to obtain sufficient rental information,etc.For the above reasons,The 2013 revised IAS17 request for comments was released by IASB,eliminating the classification of operating leases and financial leases;China’s Ministry of Finance issued new accounting standards in 2006,marking the establishment of China’s and international accounting and financial reporting standards substantive convergence of corporate accounting standards system,in 2018 issued CAS21(2018),mainly based on IFRS16-leases(2016),the changes are mainly reflected in the definition of leasing,accounting processing and information disclosure.The development of leasing business is an indispensable part of the airline’s operation and management strategy,and it is also related to the company’s continuous operation foundation.The new lease accounting standards will have a significant impact on assetheavy companies such as airlines,especially those with a relatively large operating lease business.For airlines,it is necessary to take proactive measures to adapt to the impact and changes brought about by the new leasing standards.Based on the theoretical basis of the use right-of-use model,Economic Consequences and Pecking order theory,this paper adopts the multi-case analysis,taking Air China,Eastern Airlines,China Southern Airlines and Spring Airlines as the cases to analyze the changes of financial statements and financial indicators caused by the new standards.And came to the following conclusions: the implementation of the new lease standard will lead to an increase in the asset-liability ratio,which can more truly reflect the real assets and liabilities of the airline;for the income statement,the actual payment of the main business cost in the old lease accounting standard Under the new lease standard,rent is split into financial expenses and depreciation expenses.The overall operating cost is reduced,and operating profit and income tax increase accordingly;cash outflows from operating activities decrease,and cash outflows from financing activities increase,which improves the airline’s cash flow ratio,The total amount of the cash flow statement has not changed.At the same time,the new lease accounting standards will have varying degrees of impact on financial indicators.The debt-to-asset ratio will increase,the solvency will weaken,the EBITDA will increase,the interest protection multiple will decrease,the profitability will decrease,and the operational capacity will decrease.With the implementation of the new leasing guidelines,airline leasing decisions will be more in line with real leasing needs.However,the changes in financial statements will bring the negative impact of creditors and investors on the evaluation of the company,and the difficulty of obtaining debt financing and equity financing will increase.Based on the above influencing factors,this article puts forward suggestions for reference on the basis of analyzing the operating conditions,leasing status and financing structure of the case airline.The airline can take different countermeasures according to the degree of influence of the factors and the company’s own situation:reasonable planning Leasing model,expanding financing channels,and strengthening risk management to adapt to the changes brought about by the implementation of the new leasing standards.