The Influence Of New CAS14 On Revenue Recognition Of Construction Enterprises And Its Countermeasures

CAS 14 was formally promulgated in July 2017,enterprises listed both at home and abroad have to implemente it since January 1,2018;other listed companies in China have to implemente it since January 1,2020;non listed enterprises that implement enterprise accounting standards shall be implemented since January 1,2021.Compared with the original income criterion,the content of the new criterion has undergone significant changes,further convergence with IFRS15 which is issued by IASB in May 2014.The new revenue recognition theory has changed from the view of revenue and expense to the Assets-Liabilities View.At the same time,the revenue from previous transactions was recognized as a revenue recognition from the perspective of contracts.The promulgation of this criterion has played an improved role in dealing with various complex revenue recognition situations in the new market environment and solving the problem of revenue recognition.Since the implementation of the new income standard is the general trend,but many domestic enterprises have not formally applied it since its promulgation,the effect of the implementation of the standard will also cause many doubts,and there are many details to be improved.Comparing with other industries,the construction industry has some particularity in revenue recognition,and its production input,transaction nature and so on are significantly different from other industries.In view of this situation,this paper discusses the differences between the present accounting standards and the new income criteria.Starting with X construction enterprises,this paper analyses the impact of these differences on income recognition and enterprise management that may be caused by accounting entities.The study found that after the application of CAS 14,the volatility of revenue recognition of X enterprise would be more obvious,and the financial indicators related to revenue would also show a relatively large change.Therefore,the paper proposed corresponding countermeasures from the aspects of contract management and business assessment management.Through the analysis results of financial information such as income,liabilities,assets and so on have a tremendous impact on enterprises to promote early strategic and operational decision-making planning in enterprises.