Research On The Impact And Economic Consequences Of The Implementation Of The New Lease Standards On The Financial Statements Of Enterprises

On December 7,2018,the Ministry of Finance officially revised the Accounting Standards for Business Enterprises No.21-Leasing,which marked the formal integration of China's leasing standards with international leasing standards IFRS 16.The new lease criteria require that all leases of the lessee(except the operating leases under special circumstances)should be confirmed with the right to use assets and lease liabilities.Incorporating it into the balance sheet is the core change in the revision of leasing standards,which has a great impact on aviation enterprises with a large proportion of operating leasing assets.One year after the implementation of the standards,it is of great practical significance to discuss the economic consequences of the implementation of the new lease standards with relevant data.In this paper,Air China,which accounts for a large proportion of leasing business,is selected as the case study object,analyzing the impact of implementing the new leasing standards on its financial statements,observing the changes in the quality of its financial statements,and on this basis,further examining the economic consequences of these changes on various stakeholders.Through case analysis,it is found that the implementation of the new leasing standards will change the accounting treatment of airlines' operating leasing business,thus affecting financial statements,which is manifested in increasing the book value of assets and liabilities,and the growth rate of liabilities is greater than that of assets,resulting in an increase in asset-liability ratio;The rental fee is confirmed in advance,showing a trend of high before and low after the lease period;At the same time,it changed the internal structure of cash flow statement.The internalization of off-balance sheet and off-balance sheet makes financial information more open and transparent,and improves the quality of financial reports of enterprises.For stakeholders,the implementation of the new lease criteria has a nominal negative but positive impact on investors and creditors,and enterprises have fully demonstrated the real debt level,which makes creditors' assessment more reliable and enhances the controllability of risks;Investors make investment judgments according to the real situation of the enterprise to avoid misjudgment;At the same time,the earnings management of enterprises is reduced,and the transparency of financial reports of enterprises is improved,which is ultimately convenient for supervision by regulatory authorities.