Case Study Of Spring Airlines Based On New Lease Criteria

Leasing is a method widely used by enterprises to obtain the right to use assets,but the serious limitations exposed by the current leasing standards are often used by enterprises to obtain off-balance sheet financing,resulting in its being criticized by investors.In order to further optimize the current international leasing standards,the international accounting committee(IASB)has promulgated the international leasing standards no.16-leasing(IFRS)on January 13,2016.The new international leasing standards have been formally implemented since January 1,2019.The new lease standards implement the integration of two leases,that is,no longer distinguish between operating lease and financial lease,directly as a financial lease into the corresponding statements.It is essentially different from the current international lease rules.The ministry of finance in our country as early as April 2010 issued the accounting standards for Chinese enterprises with international financial reporting standards convergence road map ",and suggests that our country in the future revision of the accounting standards convergence with international accounting standards,therefore our country in January 8,2018 issued office will [2018] no.1 to the accounting standards for enterprises no.21-leases draft.And on December 13 of the same year issued the revised version of the accounting standards for enterprises no.21-leasing.New lease criterion definition of assets more comprehensive and clear,emphasizing the use characteristic of the assets,requirements on the statements reflect the operating lease,this prevents the enterprise use loopholes in current leasing criterion for off-balance-sheet financing,more able to truly reflect the enterprise a certain period of the financial situation,operating results and cash flows.Strengthening the research on the new lease criterion is conducive to enhancing the economic characteristics of service.The modern rental industry began to sprout in the United States in the 1950 s and extended to Europe and Japan in the 1960 s and 1970 s.After that,China began to introduce the rental industry in the 1980 s after the reform and opening-up.In 2016,China has become the second largest leasing market in the world.Domestic airlines mainly introduce aircraft through leasing,including financial leasing and operating leasing.Due to their different adaptability and influence,they are related to the future development of airlines.Therefore,managers should be reminded to pay more attention.This paper adopts case study method and comparative analysis method to study theimpact of the implementation of the new leasing standards on the leasing business of spring airlines.First analyzed the new promulgated background of lease criterion and existing problems of leasing criterion,and then compare the old and new criterion difference,at the same time to evaluate new lease criterion,on this basis,the low cost operation of spring airlines,for example,by comparing the current guidelines and new lease criterion for leasing business in accounting and financial reporting and disclosure,the spring airlines from 2016 to2018 financial report analysis,results show that the applicable after new lease criterion,spring airlines balance sheet assets and leasing of the right to the use of debt increases,the total profits have fallen slightly,the cash flow statement has no effect,And the asset-liability ratio,equity ratio,interest protection multiple,total asset turnover ratio,net interest rate on sales and other indicators have an impact,indicating the impact of spring and autumn aviation risk management and control.Finally,in order to reduce the cost brought by the introduction of aircraft and the impact of the new lease criteria,flexible operating lease is adopted to improve the proportion of aircraft purchased by oneself and optimize the aircraft ownership.We will adjust leasing contracts,innovate business models and optimize financing channels.