Research On The Revenue Recognition Of Telecommunications Enterprises Under The New Income Standard

Income is very important for enterprises.However,the recognition and measurement of income under the original standard are more and more difficult to adapt the new profit model of enterprises,especially for telecommunications enterprises.This not only makes it difficult for financial accounting information to reflect the essence of economic transactions,but also reduces the comparability of financial data among enterprises.Against this background,IASB and FASB published the Joint Income Standard in an attempt to change the income recognition and measurement system and solve the existing problems.In order to achieve the international convergence of accounting standards,China's new Corporate Accounting Standards No.14-Income was also formally implemented on January 1,2018 for enterprises simultaneously listed on domestic and abroad.The research contents of this paper include: part one collects and sorts out the literature of domestic and foreign scholars on the motivation,contents and the impact of changes of the standard on the basis of extensive access to relevant literature at home and abroad;part two introduces the theoretical basis and main contents of the new income standard;part three briefly introduces the basic situation,profit model and operation situation and performance of Z case company;part four elaborates the current situation and existing problems of Z company's income recognition under the old standard;part five explores whether the new income standard has solved these problems,analyses the related business of Z company affected by changes of the standard,and summarizes the impact of changes of the standard on the income structure and the profitability of Z company;part six combines the new income standard with the current situation of the case company,and puts forward suggestions to cope with the impact of changes of the standards from three different perspectives of enterprises,industries,standard-setting and regulatory bodies;part seven summarizes this paper and puts forward shortcomings and prospects.This paper finds that the new standard is based on customer contracts and replaces the view of Risk and Reward Transfer with the view of Control Transfer.It solves the problems of income recognition and measurement under the original standard,and its impact of telecommunications enterprises may lead to changes of the income amount and the income structure,and ultimately affect the business performance of enterprises.This paper also puts forward some suggestions for different market subjects to cope with the impact of changes in the standard,which is also the one of core points of the full text.