The Application And Influence Of CAS14(2017) In China Mobile Company

Revenue is an important financial indicator for internal and external investor to make decisions and also takes a significant role on enterprise management.The new revenue standard provides clear guidelines for contracts which contains multiple deals,stating that recognition of revenue changes from risk transfer to control transfer,and it also regulates some particular transactions.As the global fastest-growing industry,the telecommunications have a wide variety of services,multiple-user contracts and sorts of agreements.However,it is unclear to clarify these impact caused by new revenue standard,therefore,exploring the impact on telecommunications industry from financial information,enterprise management,managerial performance and other perspective and figuring out solutions are comparatively necessary.This paper discusses the accounting treatment of China mobile company’s typical deals,and summarizes the impacts and challenges on these businesses affected by new standards from financial information,managerial performance,managerial operation and other dimensions.In response to these challenges,this essay suggests recommendations and solutions for China mobile company and other relevant company.The essay is divided into the following three main parts:The first part is the application of the new standard on China mobile company’s businesses.From the perspective of the five-step method model,this part decomposes the model into various points and combine with company’s business to find out the typical businesses which affected by new standard most.Then this part analyzes these businesses through practical cases,and the results indicate that each business has big differences on accounting treatment from the identification of deals,the measurement of contract amount,additional options and contract performance cost aspects.The second part is the influence to China mobile company.This part concludes that the application of new standard will cause both positive and negative influence to mobilecompany based on practical case analysis from financial information,managerial performance and other dimensions.The third part is the suggestions for China mobile company.This part provides recommendations and solutions from the perspective of regulator and mobile company in order to make mobile company better adapt to new standard and give reference to other relevant companies.