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

In May 2014,the IASB and the FASB jointly issued the International Accounting Standards No.15-Customer Contract Revenue,ie IFRS15.Subsequently,China also established a revised group of income standards,and on July 5,2017,officially issued the "Enterprise Accounting Standards No.14 One Income",the new income standard.All along,China has been closely monitoring the development of international standards,and China's income standards have continued to converge with international accounting standards.The real estate industry has made an irreplaceable and tremendous contribution to the development of China's economy.It is one of the pillars of China's economic development and its profitability is huge.The profit is generated from the income,and only the real estate enterprises can deal with the revenue recognition and measurement and information disclosure,so as to truly and reliably reflect the profitability of the real estate enterprise.At present,under the guidance of the old income standard,China's real estate enterprises use the “risk and reward transfer model” to confirm the income of the real estate development business,and their revenue recognition is concentrated at a certain point in time.So far,the time for the recognition of the income of real estate enterprises in China can be summarized as “the point of completion acceptance”,“the point of actual delivery” and “the point of transfer of property rights”.Under the guidance of the old income standard,real estate companies' income recognition is very concentrated,and the volatility of income on each balance sheet date is large.At the same time,because Country Garden adopted the new income standard in advance in 2017,its profit at the end of the year increased by 27.77%,which has aroused widespread concern in the academic community.Therefore,this paper selects the real estate industry as the specific research object,and deeply studies the method of confirming the income under the new income standard.Its impact on the real estate industry.The first part of the article introduces the theoretical background of the birth of the new income standard from the perspective of the real estate industry.The second part is to study the literature before and after the domestic and foreign scholars' research on the update of the income criteria before and after the update,and focus on the real estate under the new income standard.The controversy of income recognition and the impact of new income standards will establish the research direction of this paper.The third part analyzes the difference between domestic and foreign income standards and the new and old income standards in China from the revision process of income standards.Further research laid the theoretical foundation;the fourth part borrowed the statistical data of the 2013 and 2017 real estate enterprise income recognition methods to further explain the problems in the real estate enterprise income recognition treatment under the old income standard,which led to the income of real estate enterprises under the new income standard.How to confirm,combined with the content of the new income standard,theoretically elaborated on the impact and impact mechanism of the new income standard on the real estate industry;the fifth part introduces the new income standard for Vanke as a case study,and analyzes it with specific data.The impact of the new income criteria before and after the new income criteria,and thus the theoretical impact of the fourth part,and the impact of the new income standards on the real estate industry is not entirely beneficial,it There are limitations in itself;the sixth part is the research conclusions and related recommendations.This part of the system summarizes the research results and research deficiencies,points out the advantages and limitations of the new income standards,and implements the new income criteria from five perspectives.Put forward relevant suggestions,and put forward the insufficiency and future research directions for the content of their own research.This paper systematically studies the new income criteria,sorts out the domestic new and old income standards and the content differences with international standards,and provides a theoretical reference for the research of later scholars.At the same time,it combines Vanke's specific financial information to explain the new income criteria in real estate enterprises.Application and impact,for real estate companies that do not adopt new revenue standards,so that they can make adjustments and responses in a timely manner.