Analysis On The Financial Impact Of New Leasing Standards On BESTORE From The Perspective Of Lessee

In December 2018,the Ministry of Finance issued a new leasing standard,which stipulates that all leasing businesses,except short-term leasing and low value leasing,should be reflected in the statements.The new leasing standards will be fully implemented in China from 2021,which will have a great impact on the financial situation of the leasing enterprises that used to have more leasing business.The leasing business of retail enterprises mainly relies on operating leases.Therefore,this paper selects the good quality stores of listed enterprises in the retail industry for in-depth analysis.With the implementation of the new leasing standards,the financial situation of good quality stores will change significantly.After combing the relevant literature,this paper introduces the revised content of the lease criteria in detail.After that,according to the restated annual report data of BESTORE in 2020,the impact on BESTORE is specifically analyzed from the aspects of accounting treatment,capital and expense structure,financial statements,financial indicators and operation management.After the implementation of the new leasing standards,the assets and liabilities of BESTORE have increased significantly,the profit level of the enterprise at the initial stage of leasing has decreased significantly,and the internal structure of the company’s cash flow statement will change.Compared with the original leasing standards,the indicators such as solvency,operating capacity,profitability and economic added value of BESTORE show a downward trend,resulting in a decline in the ability of enterprises to create value and an increase in financial risks.The above conclusion shows that the new leasing standards can truly reflect the leasing business of BESTORE,and will greatly improve the quality of accounting information of the enterprise to a certain extent.However,in the early stage of leasing,it will have an adverse impact on the operating performance of the enterprise,which will reduce the evaluation of stakeholders and increase the difficulty of financing.Finally,according to the situation of the case enterprises,this paper puts forward some countermeasures to provide some references for Chinese retail enterprises to deal with the impact of the change of the standards.