A Research On The Financial Impact Of New International Leases Standard On Eastern Airlines And Coping Strategies

In recent years,As a financing tool,leasing has effectively promoted the rapid development of air transport industry.However,since the birth of the old lease criterion,the classification standard and accounting treatment of lease transactions have been questioned by the practice circle.On the one hand,most of the operating leases have the characteristics of financing,but they are exempted from the financial statements of the lessee,which reduces the integrity of financial reports.On the other hand,the old lease criterion relied too much on the professional judgment of accountants for the classification standard of lease transactions,which resulted in great differences in the accounting treatment of operating lease and financial lease,and reduced the comparability of financial reports.In order to solve such problems of off-balance sheet financing of the old standards,after repeated deliberation and discussion,IASB listened to the opinions of all aspects,and issued the formal new lease accounting standards in January 2016 after ten years.The most significant change is the accounting of the lessee's lease business,which requires the "use right model" as the basis.This measure can effectively restrict enterprises from using operating leases for off-balance sheet financing,thus improving the reliability of financial information.At the same time,in December 2018,the ministry of finance of China also issued new formal lease standards one after another,the main content of which is consistent with international lease accounting standards.The new international leasing standards are expected to have a certain impact on the development of enterprises with more leasing businesses and leasing related industries in China.Therefore,lessee enterprises need to take certain measures in advance to deal with it and reduce the adverse impact,so as to achieve the goal of maximizing benefits.Under such a background,how the aviation enterprises represented by China Eastern airlines deal with the adverse effects brought by the capitalization of operating lease will be studied in this paper.This article first elaborated the use right asset and the leasing liability theory part.Then to IFRS16 international leasing criterion as the main research object,combined with relevant content on the latest leasing criterion in our country,from financial indicators,financial statements and financial decision-making and the three angles,emphatically analyzes the operating lease capitalization of the new point of view to the lease business more the financial impact of the enterprise,thus to realize the reform is not do more harm than good.Second in case study part,the author selected the aviation industry representative enterprise eastern airlines as an example,the selection of its financial reports disclosed in an operating lease transaction data,through the analysis of quantitative reduction,from the old leasing criterion and leasing criterion IFRS16 contrast research Angle,elaborated to eastern airlines accounting,financial indicators,the change of the financial statements and financial decisions.The cea and similar company shall assess the financial impact of the IFRS16 in advance,reduce disadvantage expansion,this paper from the financing channels,leasing business innovation,improve the leasing system,establish effective communication as well as detailed information leasing business information five Angle puts forward some Suggestions,in order to get the attention of the airlines.