Analysis Of The Impact Of The New Leasing Standards On China Southern Airlines' Financial Performance

In December 2018,after soliciting opinions and discussions for many times,China promulgated the new lease accounting standard CAS21,which followed the footsteps of the international lease standard revised in 2016 in terms of content and direction.Distinguish between operating leases and financial leases of lessees,operating leases are treated as financial leases and are required to be included in right-of-use assets and lease liabilities except short-term leases and low-value leases.Because the aviation industry is one of the largest leasing households,the overall leasing accounted for a relatively high,therefore,for the promulgation of the new leasing standards,the impact on the aviation industry and countermeasure research has become very urgent.This article first explained the background of China's lease accounting reform,and made a specific analysis based on the changes in the new standard,including changes in accounting treatment methods such as lease definition,lessee,lessor,and sale and leaseback,and compared the new and old lease standards.The differences introduce the main changes in the new leasing standard.At the same time,it summarizes the proportion of operating leases in lease-intensive industries including aviation,retail,tourism and transportation,and finally selects the representative enterprises in the aviation industry with the highest proportion of off-balance sheet leasing present value in total assets As the specific research object of this paper,China Southern Airlines,by simulating the application of the new leasing standard to the China Southern Airlines 2018 annual report,specifically calculated the impact of the new standard on the financial performance of China Southern Airlines,and finally put forward strategies to deal with the impact.This article includes the following seven parts:The first part is an introduction,introduces the background and theoretical significance and practical value of the selection of this article,and also expounds the research content and methods of this article,research innovation and shortcomings.The second part is the theoretical basis and literature review of this article.This paper introduces the basic economic consequences theory of this article and the commonly used methods of financial performance evaluation.This article selects two methods for analysis,which provides a theoretical basis for the impact of the new leasing standards on the financial performance of China Southern Airlines.At the same time,it finally summarizes the current research status of leasing standards and financial performance at home and abroad,laying the foundation for thesis writing.The third part is an overview of the revision of the new leasing standard,mainly introducing the background and main contents of the revision of the new leasing standard.Finally,by comparing the new and old leasing standards,the core changes of the standard revision are obtained.The fourth part mainly introduces the off-balance sheet financing of lease-intensive industries,and selects the representative company of the aviation industry,which has the largest proportion of off-balance sheet financing,as the case company.Based on the introduction of China Southern Airlines,it explains that China Southern Airlines applies the new leasing standards Its right-of-use assets,lease liabilities,accounting treatment and the impact of the three major financial statements provide data support for the following financial performance research.The fifth part is based on the writing of the fourth part,through specific quantitative calculation,using financial index method and EVA analysis method to analyze the impact of China Southern Airlines' application of the new leasing standard on its financial performance.The sixth part puts forward the strategy of China Southern to deal with the new leasing standard on the premise of drawing conclusions from the fifth part.The seventh part will summarize the previous discussion and give some enlightenment significance to the companies that are seriously affected by the new leasing standards like China Southern Airlines.The conclusion of this article is mainly:after entering the operating lease contract into the table,it will have an adverse impact on the short-term financial statements of the company.The specific realization is that the company's assets and liabilities have increased significantly,and the profit has fallen sharply in the previous period,but for an accounting During the period,the change in profit is zero.Due to the rise in assets and liabilities and the sharp decline in previous profits,the profitability,operating capacity and debt-servicing capacity of enterprises that were originally developing have deteriorated in the short term,and financial performance has declined.However,the EVA index has been improved after the application of the new leasing standard.The EVA index can reflect the long-term to a certain extent,which is conducive to the creation of shareholders' wealth.