Research On The Impact Of New Income Criteria On The Accounting Practice Of Real Estate Enterprises

As an important financial indicator on the report,income is consistent with the definition of income at home and abroad,which is of great significance for attracting overseas investors and promoting the transparency of global accounting information.In recent years,China’s revenue recognition has been a multi—faceted effort towards the convergence of international standards FASB and IASB.On July 5,2017,the Ministry of Finance of the People’ s Republic of China revised and issued the "Accounting Standard for Business Enterprises No.14-Revenue".The "Accounting Standard for Business Enterprises No.15-Construction Contract"issued on February 15,2006 was cancelled.Changes in the income criteria will inevitably have a major impact on the real estate industry.This article is based on the interpretation of the new guidelines,elaborates on the basic concepts and basic theories,and further analyzes the differences between the new guidelines and the original guidelines.At the same time,aiming at the differences that will have a major impact on real estate companies,with the A real estate company as the background,the impact of the real estate company’ s income recognition time point will be analyzed,and the impact on the financial information such as income,assets and liabilities will be proposed.The suggestions on management and strategic decision-making can play a guiding role in guiding the implementation of new standards for other real estate companies in the future.This article elaborates on five parts.In the first part,the relevant literature on income confirmation and guideline reform process was summarized and summarized at home and abroad.In the context of the fact that most companies have not actually implemented the new income guidelines soon after they were released,it shows the importance and necessity of companieadopting a positive attitude to the analysis of new revenue guidelines.This part also plays the role of a full-text structure,a technical roadmap,and a research method.The second part is the theoretical basis,which explains the definition of income,the timing and conditions of revenue recognition.As the new revenue criteria put forward a new concept of revenue recognition,which has a greater impact on the real estate industry,it combines the characteristics of the real estate industry and focuses on the new revenue criteria that affect the income of real estate companiesThe third part is the core part of this paper.Taking the A real estate company as the research background,the practice analyzes the impact of the new income criteria on the company.The quantitative and qualitative analysis of the main business of A real estate enterprises’ residential sales,parking space sales,and quality assurance services combined with the impact of the new revenue criteria was conducted,and a five-step model was used in the analysis.Based on the analysis results,it is determined whether A real estate company’s residential sales should use the percentage of completion method to confirm revenue over a period of time,and analyze the obstacles that will be faced if revenue is recognized using the percentage of completion method.The fourth part is suggestions and inspirations.This part is divided into two aspects.On the one hand,the author puts forward proposals from the perspective of A real estate companies,proposes solutions to the obstacles mentioned in the third section,and comments on the preparations of A corporate managers that need to be done in advance.On the other hand,from the perspective of the real estate industry,the author extracts the analysis results of A real estate companies,pushes them forward and expands,and applies the common characteristics of the real estate industry to the entire real estate industry.The fifth part is the conclusion and deficiency.This article summarizes the main changes in the new income criteria relative to the impact of the original rules on the real estate industry.At the same time,it also summarizes the impact of the implementation of the new revenue guidelines on A real estate companies.The inadequacy of this article is that there is little research on the business of A real estate companies other than residential sales,and follow-up research is needed.