Research On The Expected Impact And Adaptation Decisions Of The Reform Of Lease Accounting Standards

Reform lease accounting standards has aroused general interest for a long time. In1997, FAS13which is referenced by many other lease accounting standards for different countries and IAS17was considered as one of "the five worst quality accounting standards". And2008financial crisis made more people realized that the reform must be done immediately. IASB and FASB issued a joint exposure draft on accounting for leases in2010. According to the exposure draft, operating lease and financial leasing should followed uniform accounting standards and not distinguish recognition any more. So far, although the standard hasn’t officially released, the details of the discussion is nearing completion, which means the reform will be done in the near future.Because of international convergence of accounting standards, our Chinese lease accounting standards will adapt to changes of the international ones. This will bring challenges to leasing industry, related departments, the tax system as well as the accounting standard-setting mechanisms. In order to better understand and accommodate the upcoming changes, researches need to be done.This article is divided into six partsThe first part, Introduction, includes induction or review of existing articles, proposes research contents and research methods, and points out the breakthroughs and limitations.The second part, the theoretical basis of lease accounting, includes lease accounting theory, modern property rights theory, game theory and other related theories.The third part, existing lease accounting standards analysis, shows the defects of the existing lease accounting standards by using historical data and realistic examples to prove reform is necessary in our country.The forth part, dynamic changes of the lease accounting standards reform and its impacts, is constructed by three sections. First of all, theoretically discuss the main contents of the dynamic reform. Then, compare existing lease accounting standards with dynamic reform to show the expected impacts of the reform by analyzing China Southern Airlines Case. Specific data analyzing will indicate that how this reform will affect different departments of leasing companies and their disclosure of financial information. Finally, get a conclusion if those changes can improve the existing leasing accounting standards.The fifth part, evaluation of lease accounting standards reform and adaptation decisions, purport the ways to adapt this reform from four angles, which are accounting standard setting mechanisms, corporate, legal and regulatory authorities, the tax system.The sixth part, ending, summarizes whole article.Based on the research, lease accounting standards reform has positive impacts on standardizing accounting behavior and fixing back draws of the existing standards. But in order to adapt to this reform, efforts needs to be made. The reform will bring businesses, legal and regulatory authorities, the tax system and accounting standards greater impact, so this article also response adaptive decision-making from the above aspects, as long as the divisions which various interest groups staff, joint force, will be able to cope well with the reform of the lease accounting standards, and promote the healthy and rapid development of the leasing industry and the entire economy.