Research On The Revenue Recognition Of Fitness Industry

With swift and violent development of economy,people's living standard has been constantly improved and people's consciousness of fitness increases continuously.Fitness has become a trend.However,as the standard part of fitness industry,the number of fitness centers spring up.Development of fitness industry attracts large amount of capital.Nevertheless,due to the special advance-payment business model of fitness center,regardless of investment purpose,financial investment or industrial integration,investors pay special attention to financial management mode of fitness enterprises.So,the way to recognize revenue under advance-payment mode has become a problem to be discussed in capital circle.Normally,different fitness enterprises will adopt different financial model in accordance with their practical situations.The result is that there is absence of comparability in financial data obtained by different fitness enterprises.The reason for specificity of accounting management in fitness enterprises mainly lies in the difference between cost type,service property,and foreign trade etc.Therefore,there are many inconsistencies existing in the process of revenue recognition,which forms great challenge to revenue recognition process.Formation of present Chinese revenue recognition standards refers to International Accounting Standards.However,the problem of current revenue recognition standards becomes increasingly prominent in more and more complex economic situation.In order to improve the adaptability of present revenue recognition standards,International Accounting Standards Board cooperates with Financial Accounting Standards Board to establish unified revenue recognition mode and solve the problem of absence of comparability caused by current accounting standards.On June 24th 2010,the questionnaire manuscript on contractual revenue standards was jointly issued for the first time.After subsequent multiple amendments,the new standards on revenue recognition---No.15 International Financial Reporting Standards---revenue produced by contract with clients was finally issued on May 28th 2014?IFRS 15——Revenue from Contracts with Customers?).The introduction of Contractual Revenue Standards aims at establishing a unified revenue recognition model so as to solve the problems existing in present accounting standards.At present,there are a number of researches about impacts of new revenue recognition model proposed by contractual revenue standards on all professions and trades.However,there are few scholars researching on its influence on fitness industry.Fitness industry has emerged in recent years.There isn't any fitness enterprise coming into our sight through listing or other approaches.Therefore,there isn't any scholar researching revenue recognition under current accounting standards.In this paper,the author will start from fitness industry to systematically sort through characteristics of revenue recognition in present fitness enterprises and problems encountered in revenue recognition process.Then,A company,as a fitness enterprise is taken as an example to discuss its revenue recognition policy and existing problems under current accounting standards.Finally,through simulating the application of"five-step method" of contractual revenue standards in A company,it discusses the specific impact of contractual revenue standards on A company.Through study on the above parts,I believe that revenue recognition of fitness centers under current revenue recognition standard will be a problem constantly discussed in fitness industry or even in capital market.No matter from perspective of accounting standards or supervision,the problems existing in revenue recognition will continue.It is also the main reason why fitness enterprises are difficult to set foot in capital market.Introduction of contractual revenue standards can make a relatively good improvement of the irregularity in revenue recognition of fitness enterprises and provide new thought of revenue recognition to vast fitness enterprises.However,the specificity of fitness enterprises continues.In order to actually solve those problems,the constitutors should further provide revenue recognition guideline or offer further guideline to supervision layer of capital market.