Research On The Impact Of New Leasing Standards On Accounting Treatment And Financial Performance Of Yinzuo Group

China’s Ministry of Finance issued the revised new lease accounting standard CAS21 in December 2018,which no longer requires lessees to distinguish between operating leases and finance leases according to the criteria for lease recognition,but instead unifies the recognition of assets that meet the conditions for lease recognition as right-of-use assets and lease liabilities.The promulgation of the new standard can effectively avoid the off-balance sheet financing risks brought about by operating leases in the old standard and improve the quality of corporate financial information,but the resulting financial risks cannot be ignored.The retail industry,as an enterprise that has introduced a large number of leased stores under operating leases,is bound to experience fluctuations and impacts on its financial position as a result of the promulgation of the new leasing standard.In this thesis,Shandong Yinzuo Group is selected as the research object to explore the impact of the new leasing standards on the financial performance of the retail industry.This thesis starts with a literature review of the old leasing standard,the new leasing standard,and the impact of the revision of the new leasing standard on enterprises;secondly,it briefly introduces the relevant accounting concepts and their basic accounting theories,and compares in detail the differences between the old and new standards.Then,based on the review of domestic and international literature and the accumulation of the above theories,the accounting treatment related to the leasing business in the Yinzuo Group was restated based on the changes in the new leasing accounting standards,and its impact on the financial statements was compared and analyzed.Further analysis of the impact of the new standards on the Yinzuo Group’s financial performance showed that not only did key financial indicators deteriorate to varying degrees,but also that the Z-Score model was used to analyze and evaluate the Yinzuo Group’s financial risk and EVA performance evaluation indicators to assess corporate value of the enterprise,which also revealed a decline in financial performance under the new leasing accounting standards and pointed out the economic consequences:enterprises It was also found that financial performance declined under the new leasing accounting standard,and that this had economic consequences:increased difficulty and cost of financing,over-reliance on leasing for asset acquisition,and deferred income tax during the lease term.Finally,based on the findings of the Yinzuo Group study,we propose countermeasures and recommendations on how the retail industry can respond to the challenges of the new standard and improve its financial performance.