Study On Tower Contract Design Of Telecom Enterprises Under New Lease Standards

As a way to obtain the right to use assets,leasing has been widely used in modern enterprises.Prior to the implementation of the "Accounting Standards for Enterprises No.21-Leases"(hereinafter referred to as the old lease standards)basically refers to the International Lease Accounting Standards IAS 17,in reflecting the quality of accounting information,there are major drawbacks.In view of the problems existing in the lease standards implemented in China and the consideration of maintaining the convergence with international accounting standards IFRS 16,after nearly a year of consultation,on December 13,2018,the Ministry of Finance issued the official version of Accounting Standards for Enterprises No.21-Leases(hereinafter referred to as the new lease standards).The new lease standards cancel the original standards,which divides the leasing business into two types: operating leases and financing leases,so as to realize "two leases in one".It confirms that an enterprise has the right to use the assets and at the same time that confirms an enterprise should fulfill the relevant payment obligations,and recognizes depreciation and interest costs separately.At present,a large proportion of the key telecommunications equipment in the telecommunications industry,the tower,is obtained by leasing to its affiliated company,China Tower Company.The new leasing standards are expected to have a profound impact on the telecommunications company’s tower leasing business.This paper chooses China Unicom as an example,analyzes the financial statements of China Unicom with the new leasing standards,and analyzes the impact of the new leasing standards on China Unicom’s existing financial statements from the major financial statements.And by studying the current "Business Pricing Agreement" signed by China Unicom and China Tower,starting from the contract,there are three leases factors to be studied: the non-lease part,the lease period and the lease payments of each period.The leases contract was redesigned on the basis of the new lease standards.Through the research,it is found that under the application of the new standards,measures such as splitting the non-lease part,moderately extending thelease period and evenly distributing the lease payment amount can all cover the negative impact of the initial application of the new lease standards on China Unicom’s financial statements.Through the above calculation and analysis,the paper puts forward the conclusion of the impact of the new leasing standards on the leasing business of telecom enterprises at the end of the article,and puts forward specific proposals such as appropriate dismantling of non-lease part and reasonable arrangement of contract leasing period.Partial reference is provided for the design of the tower leases contract.