The Research On Several Problems Of Conforming Sales Revenue Of Product Development In The Real Estate Industry

In the choices of the conditions of revenue recognition, the real estate industry always has been existing differences. According to the conditions that listed on the disclosure of the annual financial reports of Real Estate Company, there are three kinds of different operations, including the revenue recognition when the completion acceptance、transfer and the actual delivery. Among them, the recognition revenue when the completion acceptance and transfer are used more widely. "The Accounting Standards of No. Fourteenth for Enterprises of China" also make more clearly definition for the conditions of revenue recognition. But China’s "property law" clearly define that the transfer of property ownership is not applicable to registration system. That is to say that the real estate is really transferred when obtaining the property certificates. The conditions of Real Estate Company’s revenue recognition currently do not meet China’s "property law" and have some Ambiguities with the requirements of “The accounting standards of No. Fourteenth for Enterprises of China”. If it not meet the requirements of "The accounting standards of No. Fourteenth for Enterprises of China", there are existing the suspects of the recognition of revenue early or the recognition of revenue delayed. Many experts and scholars also support the view of the recognition revenue when the completion acceptance and transfer. In the view of the accounting perspective, there are existing the doubts Whether there are exist some advantages in the recognition of the revenue when the completion acceptance and transfer than the recognition the revenue when actual delivery more obviously. Two different conditions of recognition revenue lead to the different of the time in recognition revenue. there are also existing the doubts. If meeting the requirements of the accounting, the early recognition of revenue or the recognition of revenue delayed will lead to the conditions that revenue and cost do not meet the requirements of the matching principle of tax law. And At the same time, it will cause synchronized the in the recognition of income and cash flow and a high rate of corporate assets and liabilities. In the views of the above problems, the author makes a concrete analysis and study through the analysis of the specific revenue recognition and Real Estate Company financial situation recent years. And the author analysis the three different income confirmation conditions of practical through combining with the actual situation of listed real estate enterprises and draws the conclusion that provide suggestions for the listed real estate companies about the revenue recognition issues.