Research On Retail Financial Risk Management Under The New Leasing Criteria

Leasing is a common financing method in a market economy where an enterprise obtains the right to use assets at a lower price within a certain period.Due to the lack of provisions in the old leasing standards to reflect operating leasing business in financial statements,accounting information is distorted.In order to fill the loopholes,China introduced new leasing standards in December 2018 and officially implemented them nationwide in 2021.The new standard adopts a two in one accounting treatment model,which reflects the assets and liabilities of operating leases in the financial statements,which enhances the comparability and authenticity of accounting information.However,after the implementation of the new standards,many off balance sheet leased properties have been included in the table,which has a significant adverse impact on industries with large leasing scales such as retail,causing retail enterprises to present varying degrees of financial risk.Identifying,evaluating,and timely controlling financial risks that exist in enterprises is of great significance for their sustainable and healthy development.Therefore,the article selects RAINBOW DIGITAL COMMERCIAL CO.,LTD.(hereinafter referred to as RAINBOW),a representative enterprise with a large proportion of leasing business in the retail industry,as the research object to study the financial situation,financial risks,and response strategies after the implementation of the new leasing standards.The article uses research methods such as case analysis and comparative analysis to draw the following conclusions: Firstly,the new leasing standards will have a negative impact on RAINBOW in the short term,manifested as a significant increase in assets and liabilities,a decrease in short-term profits,internal changes in cash flow statements,deterioration of financial indicators,and a decrease in asset securitization returns;Secondly,under the new standards,RAINBOW faces a series of financial risks,and the use of the Z-value model for risk assessment also leads to the conclusion that RAINBOW ’s financial risks increased during the implementation of the new standards.Then,the comparative analysis method is used to study the similarities and differences in financial risks between RAINBOW and the retail industry,and the implementation nodes of the new leasing standards are used as the boundary to summarize the financial risks identified before and after the changes in the leasing standards;Thirdly,in response to the financial risks faced by RAINBOW,it is proposed to improve the professional level of financial personnel,build a leasing process management module,and optimize the layout of retail formats;Finally,based on the case study of RAINBOW,it is concluded that retail enterprises should reasonably control their expansion scale,develop online sales,establish communication mechanisms,and manage risks throughout the entire process under the new standards,in order to better respond to the impact of the new standards and achieve high-quality development.