Research On The Impact Of New Income Standards On Real Estate Enterprises

On July 5th,2017,the Ministry of Finance issued the No.14 Business Accounting Standards – New Revenue Standard.The new revenue standard requires: companies that are listed both domestically and internationally and companies that use International Accounting Standards or corporate accounting standards begin to implement new revenue standards from January 1st,2018;other domestic listed companies will implement the new revenue standard from January 1st,2020,the non-listed company in China will implement the new revenue standard from January 1st,2021.The new revenue standard and the International Accounting Standards No.15 "Revenue from customer contracts" have maintained accordance,no longer classify income,that is distinguish between the sale of goods,the provision of labor,the transfer of assets and the construction contract,adopting the new revenue recognition model uniformly that the five-step model is to identify the contract,identify the individual performance obligation,determine the transaction price,and share the transaction price to each individual performance obligation,and confirm the revenue after the completion of the performance obligation.The new revenue standard adopts the right of control transfer model.Compared with the old revenue standard’s risk-reward transfer model,it is easy to confirm the time of the revenue recognition.It is confirmed that the change of the model will affect many industries,and the real estate industry will be influence,as one of the industries with greater influence.While the real estate enterprises are the pillar industries of China’s national economy,so studying real estate enterprises has practical significance and theoretical significance.As one of the largest domestic real estate enterprises,Country Garden has implemented the new revenue standard in advance in 2017,and has disclosed the relevant impact in the 2017 annual report and the interim report.Therefore,this paper selects Country Garden as the studying object of case.The research methods in this paper mainly include documents research method,case studying method and the way of qualitative analysis.Firstly,according to experts and scholars,in the literature,the views on the old and new revenue standards have their own understanding and understanding of the new and old revenue standards.Secondly,Country Garden is taken as an example to analyze the data of the company from 2013 to 2017.Business status and financial status;Finally,based on the company’s 2017 data,the impact of the new revenue criteria on the company was studied.According to the above research and analysis,the following conclusions can be drawn: Under the new revenue standard,real estate enterprises adopt the same revenue recognition model for the same business,which can effectively improve the comparability between real estate enterprises and reflect the real business performance of the enterprise.At the same time,the adoption of the new revenue standard has increased the confirmed amount of Country Garden’s current revenue,reduced the revenue tax incidence,and optimized the financial indicators of the enterprise.The new revenue standard stipulates that the company must fully disclose the relevant accounting policies and details of accounting subjects,so the improvement of information disclosure is beneficial to the analysis of the company by stakeholders.In addition,the new revenue standard may also have an impact on the company’s earnings management,risk control,management processes,and so on.Finally,based on the results of the case study,summarize the conclusions drawn from the case,put forward some suggestions for real estate companies and relevant regulatory agencies,and issues that should be paid attention to in the process of implementing the new revenue standards.