A Study Of The Impact Of The New Leasing Standards On Airlines

The international accounting standards board(IASB)issued in January 2016,the international accounting standards no.16-leases(namely IFRS16),a significant change of the criterion is to require the lessee to implement "the unity of" two to rent a single model,the lessee will no longer operating lease and finance lease rentals are classified,later all use of financing lease accounting treatment of leasing business,operating lease capitalization on the balance sheet,this means that all future leasing business besides short-term lease and low value assets lease are processed to be into the table.The promulgate of IFRS16 will significantly improve the quality of accounting information of enterprises,because it cuts off the channels for enterprises to improve their financial position through off-balance sheet financing through operating leasing.In December 2018,The Ministry of Finance of China issued accounting Standards for Business Enterprises No.21--Leasing(CAS21),marking the convergence of China's leasing standards and international leasing standards.Meanwhile,the Ministry of Finance requires cross-listed companies at home and abroad to implement the new lease rules from January 1,2019,and domestically listed companies to implement the new lease rules from January 1,2021.It is of great practical significance and application value to discuss and study the influence of the new lease criterion on Chinese enterprises.This article selects China Southern Airlines that has implemented the new leasing standard as the research object,and analyzes the impact of the new leasing standard on China Southern Airlines' financial statements.Based on a review of relevant domestic and foreign research literature,this article first elaborates the relevant theoretical basis of the thesis research,then sorts out the evolution of the lease standards,and summarizes the main changes of the new lease standards and their differences from the old lease standards.Secondly,it introduced the development of China Southern Airlines' leasing business and analyzed the impact of the new leasing standard on its financial status,financial indicators,and financial risks.Finally,based on the analysis of the impact of China Southern Airlines' implementation of the new leasing standards,corresponding countermeasures are proposed.This article believes that the changes in the new lease standard are mainly manifested in six aspects: First,the principles of identification,split and merger of new leases;Second,the lessee's leasing business is measured by the right-to-use model;Third,the improvement of presentation and information disclosure;The fourth is to strengthen the relationship between the sales and leaseback business and the income standards;the fifth is to expand the scope of application of the lease standards;the sixth is to refine the classification of the lease business.The new leasing standards have brought varying degrees of impact on China Southern Airlines' financial status,operating results,cash flow,financial risks and financial decisions.In order to alleviate the adverse effects caused by the new leasing standards,China Southern Airlines should:(1)broaden financing channels and improve financial performance evaluation standards;(2)strengthen financial risk management and control,and establish a sound financial risk early warning mechanism;(3)optimize the leasing information system,Strengthen internal management learning;(4)Strengthen risk management measures to reduce interest rate and exchange risk;(5)Adjust lease business contracts and innovate lease business models;(6)Strengthen future lease contract management.