Research On The Impact Of New Leasing Standard Reform On China’s Ocean Shipping Enterprises

The continuous development of the economy has made enterprises realize the necessity of reducing operating costs and operating risks.As a win-win option,leasing has become an important way for enterprises to obtain asset use rights,so the development of the leasing industry is in full swing.However,the leasing business continues to grow.For users of corporate financial reports,it is particularly important to enhance the reliability of relevant financial information.Therefore,the reform of improving leasing standards has never stopped.The current leasing standards in China classify leases into two types: operating leases and financial leases.The lessee only needs to confirm the assets obtained from the financial lease in the balance sheet,which is similar to the IFS17.This inadvertently makes operating leases a means for companies to optimize their financial data,which not only reduces the quality of accounting information,but also affects relevant stakeholders.Therefore,the Ministry of Finance issued the "Accounting Standards for Business Enterprises No.21-Leases"(CAS21)in December 2018.The conceptual basis changed from the "risk-reward view" to the "asset-liability view",from the definition of leases,the scope of leases to lessees.Major changes have been made in models and other aspects.This article reviews the historical development of lease accounting standards and the formation process of CAS21,discusses the major changes of CAS21 on this basis,and evaluates the convergence of CAS21 and IFRS16.Based on the overall overview of the ocean transportation industry,simulate the application of the new leasing standards by COSCO SHIPPING HOLDINGS and COSCO SHIPPING DEVELOPMENT and explore the expected impact.Based on the theoretical analysis and the problems and impacts of the simulation application,we finally converged to how to make CAS21 closer to IFRS16,and how could the ship leasing industry and the ocean shipping industry make recommendations for changes in the standards.The study found that the reform of the leasing standard can better reflect the real lease situation and improve the quality of the disclosed accounting information.Some reforms have enhanced the vertical comparability of accounting information,fully reflected the rights and obligations of both parties to the lease,and are conducive to financial decision-making.There is still room for improvement.Since the release ofthe leasing standard reform signal,various data indicate that the ocean shipping industry will be one of the industries with greater impact on the leasing standard reform.Most ocean shipping companies had just turned losses into profits at the end of 2017.Due to the impact of the new crown epidemic,the shipping market,which had originally shown a moderate recovery,also fluctuated.Although the international shipping market has broad prospects,it is currently in a cold winter.In the face of the global economic downturn and the blocking of shipping routes,leasing can alleviate the financial pressure of enterprises to the greatest extent,so it has become a necessary choice for ocean shipping companies.The reform of the leasing standards will directly affect the financial data and financial indicators of ocean shipping companies,which can be both pressure and motivation in the operation of the enterprise,and promote ocean shipping companies to examine the introduction of ships and containers from the perspective of cost control and operating needs.Without being disturbed by off-balance-sheet financing opportunities,their choose of business types will be more carefully.The reform of the leasing standards is on the verge,and the ocean transportation industry will inevitably suffer the impact.On this basis,relevant government departments and ocean transportation companies in China should actively participate in the improvement of the standards and the impact of the standards reform.