Study On The Accounting Treatment Of Leasing

With the vigorous development of the leasing business,the drawbacks of the current leasing accounting treatment are gradually revealed.Therefore accounting standards constitute spent about ten years on researching the leasing accounting standards and issued IFRS16 in January 2016 finally.IFRS16 stipulates that the lessee adopts a single "right-of-use asset model",but the lessor does not change accounting treatment.So these rules can reduce the off-balance sheet financing behavior and conducive to financial reporting users make favorable decisions.The paper discusses the nature of leasing first,and uses the comparative analysis method to compare the definition and classification of leasing in different standards.Then the paper analyzes these defects in CAS21 and points out the improvement suggestions to provide the theoretical basis for the study.The nature of leasehold is usufructuary right and operating leases and financial leases have the same economic substance.Therefore China should adopt "right-of-use asset model".But there are some problems in the process of convergence IFRS16,such as lease term,components of the lease payments,reassessment of lease liabilities and so on.The paper provides the suggestions to improve them.According to the IFRS16,the accounting treatment of lessor remains unchanged,so when china revise the CAS21,the lessor’s accounting treatment is likely to remain unchanged.But there are still some problems in CAS21,such as the accounting treatment about initial direct costs,the accounting treatment and the choice of the reassessment point when unguaranteed residual value changes,confirming the entry value of recovery assets with expiry of tenancy.It is unreasonable that the lessee adapts "right-of-use asset model" but the lessor maintains the same accounting treatment.This paper combines with specific cases to lead and analyzes some problems,then provides improvement suggestions.At last,the paper sums up the full text and puts forward some problems that need continue to study.The paper intends to provide some reference for the revision of CAS21 by the analysis the classification of leasing and the accounting treatment problem of lessee and lessor.