Research On The Impact Of CAS 21-Leases On Airlines Corporations

Ministry of Finance of the People’s Republic of China revised CAS 21-Leases on December 7^th,2018,the modification section is:（1）modifying the principle of identification,separation and merger of leasing;（2）modifying dual model of lessee accounting to single model;（3）revising lessors’principle of classification;（4）adjusting sales and leaseback transaction accounting treatment,and converging with income standards;（5）modifying the disclosure requirement of leases.For airline corporation,leasing is an important way to introduce aircraft.The revision of CAS21-Leases is bound to cause significant changes in the amount and structure of financial statement and financial indicators.On one hand,this paper discusses the impact of CAS 21-Leases on the financial reports on January 1^st,2019,disclosures the change of leasing liabilities,right assets and undistributed profit,summarizes the impact of CAS 21-Leases on Airline Corporations’financial statement,summarizes the impact of CAS 21-Leases on financial ratios.On the other hand,this paper discusses the impact of CAS 21-Leases on the financial reports throughout the lease term,discuss the trend of balance sheet items,income statement items and cash flow statement items.The research value of this paper lies in,firstly,this paper offer a case for the corporation which is applying CAS 21-Leases on January 1^st,2021;secondly,this paper’s discussion of the whole lease period is helpful for financial statement users to understand the changes of financial statement items caused by the revision of CAS 21-Leases;thirdly,this paper offer some suggestion from the perspective of standard formulation,airline corporations,external users of financial reports,tax authorities,to provide feasible way on CAS 21-Leases implement.