The Impact Of The New Leasing Standards On The Financial Performance Of Red Star Macalline

After the formal promulgation and implementation of the Accounting Standards for Business Enterprises No.21-Leasing(hereinafter referred to as the "old leasing standards")in February 2006,many enterprises recorded financial leasing as operating leasing in order to beautify their financial statements and operating performance,which not only reduced the asset liability ratio,broadened the financing channels,but also improved the return on assets,enabling internal personnel to be rewarded and promoted.The reason is that the operating lease only pays the lease expense for each period,while the financial lease needs to include the leased items in the assets and liabilities and accrue depreciation.In order to put an end to such beautification of financial statements,the Ministry of Finance issued the revised Accounting Standards for Business Enterprises No.21-Leasing(hereinafter referred to as the "New Leasing Standards")on December 7,2018.The implementation of the new leasing standards can reflect more real financial performance of enterprises.The retail industry with more leasing businesses is one of the industries with the greatest impact after the implementation of the new leasing standards.Red Star Macalline Home Furnishing Group Co.,Ltd.(hereinafter referred to as "Red Star Macalline")is a listed enterprise with A+H shares.It is a leading enterprise in the retail industry and has many leasing businesses.By 2021,it will have 29 rental malls with an operating area of 1712717 square meters.Therefore,The impact of the new leasing standards on the financial performance of Red Star Macalline is a subject worthy of in-depth study.This paper is divided into five chapters.The first chapter introduces the social background of the new leasing standards,clarifies the theoretical and practical significance of the research,sorts out the research achievements of domestic and foreign scholars in the field of leasing standards,and explains the research content,research methods and innovation points of this paper;The second chapter introduces in detail the differences between the old and new lease standards,lease right theory,lease accounting theory,stakeholder theory,financial performance evaluation theory,old lease standards,new lease standards,and financial performance related concepts;The third chapter introduces the situation of Red Star Macalline Leasing Mall,restores the accounting treatment and relevant data of Red Star Macalline under the old leasing standards from 2019 to 2021,compares and analyzes the data of assets,profits,cash flows and taxes under the new and old leasing standards,and obtains the impact of the new leasing standards on the unilateral financial performance of Red Star Macalline;Chapter IV comprehensively studies the financial performance of Red Star Macalline in the first three years(2016-2018)and the next three years(2019-2021)of the implementation of the new leasing standards by using factor analysis.The research conclusion is that the financial performance of Red Star Macalline declines after the implementation of the new leasing standards;The fifth chapter puts forward targeted suggestions to reduce the impact of the new leasing standards on the financial performance of Red Star Macalline.The countermeasures are to sell inefficient assets and acquire high-quality assets at the same time,broaden financing channels to adjust the capital structure,expand operating income and strengthen cost management,appropriately reduce external debt and ensure adequate cash flow,strengthen tax planning management and cultivate talents,and establish and improve safeguard measures.