Criteria For Construction Contracts In The Construction Business Applications

As the development of China socialist economy, the construction enterprise plays a significant role in providing substantial job opportunities, which attributes to China economy development and society harmony. However, the construction enterprise faces more obstacles resulting from fierce competition and unregulated construction market. CAS15 is a special standard in income confirmation and measurement and cost accounting. The implement of CAS15 is significant to standard construction contracts in accounting and disclose information. Basing on research in construction enterprises'operation specificity, this article describes accounting system historical processing of construction enterprises and concludes the background and significance of CAS15. This article briefs the main contents of CAS15. At the same time, it analyzes the difference between CAS15 and IFRS, and concludes the advantages and disadvantages of CAS15. Further more, the article concludes several situations that construction enterprises may face when acting in CAS15. Some of the situations are covered by author's opinions, and some are just described briefly to use the little to get the big. The article places emphases on the application of CAS15 in practice and lots of excellent work on CAS15 implementation by FHEB (abbreviation of The First Highway Engineering Bureau of China Road and Bridge Corp), by the means of substantial charts, sheets and examples. Analyzing the current status in FHEB, the author describes the implement effects and concludes the main practical revision, such as confirming claims and rewards, dealing with contracts change and accounting the exceptional loss in contracts, and meanwhile the author presents the problems and correlative ways to resolve. The implement of CAS15 will impel the construction enterprise to enhance the regulation and primary management, in order to disclose the real P&L and provide the reliable information. It also will benefit the construction enterprise in enhancing the management, improving the profitability, and surviving the fierce competition of the construction market, which will be open in the near future. However, the lack of regulation and the current status of the management are still the obstacles of the implement of CAS15. Therefore, it's necessary to ameliorate both the market environment and the construction enterprise management, aiming to standardize the construction contract business and provide the reliable and integrated information to the enterprise and other users.