In this paper, the author chose Yanzhou Coal Mining Co. Ltd as an example to analyze the leasing accounting. This company was listed on New York Stock Exchange and had a good operation over the last few years. It was located in Shandong province in China.
The author is going to explore the classification, recognition, and initially and subsequently measurement of leasing accounting based on the annual report. What’s more a summary of the proposed rules and regulations for lessee is provided to make more exploration of the current status of Yanzhou Coal Mining Co. Ltd. In the third part, the research on the influence of leasing is put forward for reader’s further understanding.
In the recent period of time, IASB and FASB propose changes to lease accounting. Companies need to monitor the development of new and revised accounting standards in order to be aware of potential impacts on the company as early as possible. In this report,Yanzhou Coal Mining Co.Ltd. will be selected as an example to discuss and show the effects on the company because of the changes of lease accounting standard from the aspect of a lessee.
Seen from the above information and the current leasing condition of Yanzhou Company, the reader may have a better understanding of financial context of coal industry in the perspective of this chosen company. The company leased for the major equipment for producing coal in financial leasing measure for about 20 years. In the last of the leasing contract, the Yanzhou Company could buy the ownership of this major equipment for the rest efficient life in a low price. However, the rent for the workplace will continue or terminate according to the mutual relationship and co-operation condition.
All in all, analyzing the market condition and product perspective is the first and significant step for Yanzhou Company to win in competitive environment both in domestic and foreign markets (Andrew, 2000).
There are some limitations of this paper. For example, the coal industry does not the most outstanding and typical case to explore due to some special product requirement and much more prosperous market prospects. The analysis of leasing accounting will extend into more typical case study and the data collected should be more specific and overall.