The Impact Of New Leasing Accounting Standards On J Commercial Bank And Countermeasures

With the rapid expansion of the modern rental industry,more and more enterprises are using the deficiencies of leasing standards for off-balance sheet financing,which affects the quality of accounting information,hides the real financial situation,and is criticized by investors.To further address the issues existing with the lease standard,the IASB published the new lease standard IFRS16 in 2016.In order to ensure drawback with the International Lease Accounting Standards,china’s Ministry of Finance also issued a new lease standard,Accounting Standard for Business Enterprises No.21-Leases(CAS21)in end of 2018,and decided to implement it in batches from beginning of 2019 and 2021.In the new lease standard,the core change is the capitalization of operating leases,no longer dividing operating leases and financial leases,but including all leases in the presentation of financial reports(except for exempt items),and most of leased assets will be recognized as corresponding use rights assets and lease liabilities.This will have a greater impact on the leasing-related industry.Commercial banks mainly rent business outlets,venues,means of transportation,communication lines,software and business equipment for their own operation and management needs.In recent years,the profit model of commercial banks has been greatly affected by the marketization of interest rates.With the further narrowing of interest rate difference,the intensive and efficient financial management model has become one of the important factors affecting the profit growth of commercial banks.How to control the cost-to-income ratio and how to improve the utilization efficiency of related resources of assets and expenses has become the core goal of modern banking financial management.In this context,the execution of the new standards has brought many challenges to the financial statements,leasing decisions,and credit business development of commercial banks.This paper selects J Commercial Bank as the case study object,based on its operating conditions,financial status and leasing business conditions,and compares the changes in the accounting treatment,financial status and operation management of J Commercial Bank under the new and old lease standards through quantitative analysis and qualitative analysis,and concludes that the new lease standard will growth the extent of assets and liabilities of J Commercial Bank during the lease period;the related expenses are moved forward,which further affects its profit distribution;and the quality of its own and credit customers’ accounting information is improved.Various financial indicators showed a downward trend,exacerbating their financial risks and credit risks,while the new lease standards are more complex in terms of asset identification and accounting of the right of use,which puts forward higher requirements for the financial management and risk control of J Commercial Banks.Overall,the implementation of the new leasing standards has brought great challenges to J Commercial Bank.In order to help J Commercial Bank make a smooth transition in the reform of the leasing standard and lower the negative impact of the new leasing standard,This paper puts forward relevant suggestions for strengthening internal control,accelerating the construction of information systems,and adjusting business strategies.And hoped the analysis of this paper will enriched the relevant theories of the market adaptability of the new leasing standard,and it can provide reference for the relevant industries to react the impact of the new leasing standard.