Research On The Expected Impact Of New Leasing Criteria On JX Airlines

As a very important means of financing,leasing plays an important role in today's economy.Therefore,the requirements for the rental criteria are getting higher and higher.After the 2008 financial crisis,many companies used operating leases to make off-balance sheet financing to beautify financial statements.After many years of discussion,in January 2016,the IASB issued the International Accounting Leasing Standard No.16-Lease,which abolished the lessee's operating lease model,improving the quality of accounting information.According to the requirements of the convergence of China's accounting criteria and international accounting criteria,China's Ministry of Finance issued the Accounting Standards for Business Enterprises No.21-Leases in December 2018,which will be implemented on January 1,2019.The aviation industry is an industry which is greatly affected by the new leasing standards,and JX Airlines has a larger operating lease ratio.In this context,it is important to study the impact of changes in leasing standards on JX Airlines.This dissertation is divided into six parts.The first part is mainly the analysis of background and domestic and foreign literature;The second part is to lay a theoretical foundation for the article by reading through the literature and criterion.The third part is the introduction of the J company,and the analysis of the JX company's rental situation.The fourth part is the financial changes of JX company under the new leasing criteria,and discovers the impact of the new standard on J company by comparing the differences.The fifth part is the enlightenment brought by the above analysis;the last part is the conclusion and outlook.The research findings in this paper are as follows:(1)After the implementation of the new leasing standards,this change has increased the assets and liabilities in the lessee's balance sheet,which has led to an increase in the asset-liability ratio and changed the capital structure of the company.(2)The implementation of the new leasing criteria will also affect the income statement.The operating lease rent originally recognized as operating cost in the income statement,but it is recognized as depreciation expense and financial expense under the new leasing criteria,the company's ability to repay the principal and interest will also decline.(3)The implementation of the new leasing standards will also have an impact on the company's risk management,as the increase in the asset-liability ratio will bring financing risks to the compa ny.The new leasing standards were implemented on January 1,2019.The aviation industry is a major industry affected by changes in the standards.Therefore,this dissertation chooses airlines to study the impact of changes in standards.It has high research value and can provide suggestions for airlines to respond to changes in the guidelines,and has certain reference significance for other industries.