The Impact Of The Implementation Of New Leasing Criteria On Aviation Enterprises

With the continuous economic development,leasing is increasingly widely used in various industries in China,and it has become the main way for the aviation industry to expand the fleet size.Among the three major airlines,the use of financial leasing and operating leasing to obtain the right to use aircraft accounts for more than 60% of the total fleet size.After Enron in 2001 and 2008,the outbreak of the global financial crisis,caused the social from all walks of life question under the IAS17 real reliability of accounting information,since in order to solve the "two rent separation" causes part of the company advantage of the characteristics of operating leases are not included in the balance sheet of off-balance-sheet financing and the earnings management question,the IASB and FASB established working group jointly revised IAS17,release more version after discussion and draft,final revision of the rental criteria IFRS16 issued in 2016.After considering the convergence with international accounting standards and other aspects,the Ministry of Finance of China also issued new leasing standards in 2018,which will take effect in 2019 for some enterprises that meet the conditions.The new leasing standards stipulate that the lessee will no longer distinguish between financial leasing and operating leasing,realizing the accounting treatment mode of "two leases in one".Both of the two methods confirm the assets of the right to use and the leasing liabilities,and the advantage of off-balance sheet financing of operating leasing is no longer,which is consistent with the financial impact of the former financial leasing.New lease criterion "joining together of two rent",is the biggest change to the lessee in addition to the waiver of leasing behavior no longer distinguish between operating lease and finance lease accounting,asset and lease liability of the right to use but have confirmed the original confirmed as an operating lease contract will be included in the table,almost the same with previous finance lease financial impact.This paper takes China Southern Airlines,which has the highest number and proportion of leased aircraft among Chinese airlines,as an example to analyze the impact of applying the new leasing rules to China Southern Airlines on its finance,purchase methods and risk management,and to put forward countermeasures for other airlines.Firstly,this paper analyzes the operating conditions of China Southern Airlines with the help of descriptive statistics and other methods.In recent years,the growth rate of operating revenue and cost has slowed down,but the low growth rate of main business cost still fails to offset the weak growth of main business income,and the net profit in 2019 has decreased year-on-year.Compared with the financial indicators of China Southern Airlines before and after the implementation of the new leasing criteria in 2019,the debt-asset ratio as the representative of the solvency indicators deteriorated;For the first time in five years,the number of leased aircraft operating in the fleet fell.On the basis of the 2018 statement,the balance sheet,income statement and cash flow statement are restated according to the new leasing criteria.There is little difference between the restatement value of the balance sheet and the self-adjusted result in the 2019 annual report of China Southern Airlines,which indicates that the restatement result is relatively reliable.According to the results of the balance sheet restatement,the adjusted asset-liability ratio in 2018 was calculated.Compared with the original data,it was found that there was a large increase,which proved that the deterioration of financial indicators was indeed caused by the implementation of the new leasing standards.The sum of the increased interest expense and financial expense in the profit statement after restatement is greater than the reduced operating lease expense,which reduces the net profit.In addition to the impact of income tax expense changes in the cash flow statement,the relevant data change is only the change of attributes,and the overall change is not large.Therefore,this paper suggests that other airlines that have not implemented the new leasing guidelines should deal with it from the following four aspects: cost control,financing structure adjustment,fleet optimization and participating in the revision of the guidelines.