Research On The Revenue Recognition Of Construction Enterprises Under The New Revenue Standards

Revenue is an important financial indicator.Revenue recognition standardsis also an important part of the current accounting standard for business enterprises.The current accounting standards for revenue recognition are based on different trading patterns of economic activities.They are numerous in quantity and there is no uniform guidance in different industries.The current revenue standards now have difficult to adapt to the more complex business process environment.Therefore,starting from 2002 and regarding the issues above,IASB and FASB had been working hard to establish new revenue standards.IFRS15 was finally established in 2014.According to IFRS15,the basis for revenue recognition was changed to contract-based basis.The promulgation of the new revenue standard has brought new standards and hopes for resolving the complicated revenue problems of all industries.Based on the international convergence of accounting standards and IFRS15,China officially issued the new revenue standards On July 5,2017.The promulgation of the new revenue standards will improve many deficiencies of the current revenue standards and also bring obvious impact and challenge to all enterprises in the future.For some enterprises,the new revenue standards will be implemented on January 1,2018.Therefore,it is necessary for our country's enterprises to predict and respond to the impact of the new revenue standards as soon as possible.New revenue standards will combine cas14-revenue standards and cas15-construction contract standards,accounting treatment of construction-related enterprises will no longer follow the old revenue standards,on the contrary,they will follow the new revenue standards.This will inevitably lead to major changes in the accounting treatment of construction-related enterprises,and even prompting major changes in the accounting system,which have a significant impact on enterprises.For the above problems,this paper compares the differences between the old and the new revenue standards.Taking China State Construction Engineering Corporation as the case,this paper will also analyze the impact of these differences on revenue recognition of construction-related enterprises,and the impact of changes on the financial situation of construction-related enterprises.This paper consists of five parts: The first part mainly introduces the background and significance of the research,the structure of the article and research methods,and reviews and summarizes the literature at home and abroad,and points out the innovations and shortcomings of this paper.The second part compares differences between the old and the new standards.The third part mainly introduces the impact new revenue standard made on construction enterprises.The fourth part takes China State Construction Engineering Corporation as an example to analyze and explain the concrete impact of the application of new revenue standards on accounting recognition of construction-related enterprises in our country.The fifth part makes a conclusion and gives suggestions to Construction enterprises.