The Impact Of The New Income Standards On Real Estate Companies

Income is one of the six accounting elements,whose accounting method will directly affect the profit and loss,thus having a significant impact on enterprises,investors and other parties.IASC issued the new International Accounting Principle,IFRS 15,in May,2014.Then,our Ministry of Finance solicited opinions from various units in December,2015.The revised Accounting Standards for Business Enterprises No.14—Income,were officially released on July 5^th,2017,whose earliest implementation date was January 1^st,2018.Apart from changes to the overall framework,this revision's core was the re-regulation of the time point of revenue recognition,which made it possible to recognize income in advance.As the income recognition method of real estate industry is quite different from other industries,exploring the effect of new criteria on real estate enterprises will help guide other enterprises to make changes in the application of it.This can also test whether the change will enhance the relevance and usefulness of accounting information.This paper unifies the growth process of income criterion and the content of this revision,analyzing the real estate industry's market response to the implementation of new guidelines through survey study and event study.Subsequently,this paper takes Country Garden Holdings Company Limited as an example for specific analysis from recognition time,accounting estimates,information disclosure,accounts receivable management and operating management.In conclusion,for some business,early recognition of income will be possible as a result of new guidelines.And higher levels of requirements to the corporate management will also be put forward.Meanwhile,the idea of the new guidelines is consistent with the tax system,which leads to more procedures and more details.The conclusion of this paper will provide reference for the further implementation of the new guidelines and the adaptive transformation of real estate enterprises.