Research On The Influence Of China's New Income Standard On Real Estate Enterprises' Income Recognition

In May 2014,IASB combined FASB issued the International Accounting Standards No.fifteenth-customer contract income(IFRS15).Subsequently,our country established a revised group of income standards.In July 5,2017,the fiscal accounting standard No.fourteenth-income(CAS14(2017))was officially issued by the financial sector,indicating that our income accounting standards closely follow the footsteps of international income accounting standards,and continue to maintain the trend of convergence with international accounting standards.The real estate industry,as the pillar industry of our country's economic development,contains great profit potential.Income is the main source of profits.Only by regulating the recognition,measurement and disclosure of real estate enterprises can we truly and accurately reflect their profitability.At present,China's real estate enterprises mainly adopt the operation mode of Hongkong,and the income confirmation usually adopts the "completion method".When the real estate enterprise uses the completion method,it is very important to determine the time point of income confirmation.Under the guidance of the original income criterion(CAS14(2006)),the accounting subjects mainly rely on the "risk and reward model" to make income recognition.Up to now,the time point of our real estate enterprises' income recognition can be summed up as three points of "completion acceptance","actual delivery" and "property ownership".No matter at any point above,the income confirmation of the real estate enterprises is very concentrated,and there is a large fluctuation in the income.With the continuous innovation of the real estate business model,CAS14(2006)is difficult to meet the requirements of its new business accounting,and thus faces great difficulties and challenges.The new revenue guidelines CAS14(2017)unify the income recognition criteria and use the "control transfer model" to replace the "risk and compensation transfer model" to improve and improve the quality of financial information.From the perspective of real estate industry,we introduced the theoretical background of CAS14(2017)and extended its expected impact on real estate enterprises.The first part of this article is to review the research status of domestic and foreign research on income processing,so as to establish the research direction of CAS14(2017).The second part from the rule of the evolution of the revenue recognition criteria and income change perspective of the relationship between the two,this paper introduces the new income standards to emerge from the marked characteristics and economic consequences,for later laid a theoretical basis for further research.In the third part of the article,we know the CAS14(2017),the main content and CAS14(2006)after the core principles of differences,further discusses the CAS14(2006),the real estate enterprise income problems of processing,thus highlighting CAS14(2017)in offset CAS14(2006),the important role of content defects.Due to unable to get the company's internal data of real estate project,we in the article fourth part with the examples of country garden use HKFRS15 ahead of import,respectively from Hong Kong and the mainland real estate market sensationalism country garden events are analyzed,and some of its business has been clear about the real estate enterprises for a period of time affirm income,more should pay attention to business contract and the legal environment.Our interpretation of country garden mode depends only on the interim report publicly and note,as a result,we can't judge the part of its business over a period of time was used to ascertain real motives of income method.Then,because it could not get vanke,country garden,and other enterprises,and handle the relevant income internal data,we obtained through practical investigation of chongqing R real estate company B project accounting data and related information.According to the relevant provisions of CAS14(2017),we have determined that B project will be the real estate business that performs the obligations of performance for a period of time.Therefore,in order to explore CAS14(2017)on offset CAS14(2006)to emerge from the content of the role of defects and its economic consequences,we according to the performance schedule over a period of time to revenue recognition of B project,and the corresponding simulation calculation results.Based on the results of project B simulation using CAS14(2017),we believe that CAS14(2017)solves the existing problems in the real estate enterprise income processing.In addition,from the perspective of financial information and corporate governance,we believe that the use of CAS14(2017)by real estate companies will have certain economic consequences.The fifth part is the research conclusion,relevant Suggestions and future prospect.This subsystem summarizes the research achievements and shortcomings of this paper,puts forward relevant Suggestions for the real estate industry to implement CAS14(2017),and carries out the future prospect on the basis of the research.Through the above research on income criteria,we believe that CAS14(2006)does not exist properly,and cannot properly guide the income disposal of real estate enterprises.The relevant provisions of CAS14(2017)can make up for the shortcomings of CAS14(2006),and also breed a series of new problems.The full use of CAS14(2017)will have a certain degree of influence on all walks of life.Real estate enterprises as one of the industries that has great influence on the revision of the income standard,it has important research significance to simulate the process and result of CAS14(2017)in advance.This article is based on the real estate business simulation implementation of CAS14(2017)case study,hoping to contribute to the continuous improvement of the guidelines.