The Impact And Countermeasures Of New Revenue Standard Of Real Estate Enterprises

Profit is one of the most important financial indicators of an enterprise.The confirmation,measurement and report of revenue directly affect the profit amount of the enterprise.Therefore,companies should pay more attention to changes in revenue standard.In May 2014,IASB and FASB jointly issued IFRS15.The Hong Kong Institute of Certified Public Accountants has not easily adopted the standard.In order to keep pace with international revenue accounting standards,China's Ministry of Finance officially issued Enterprise Accounting Standard No.14 – Revenue on July 5,2017.Country Garden is the first real estate company to implement the new revenue standard.The new revenue treatment method adopted in advance has aroused the attention of all parties.Some scholars believe that Country Garden's move is to provide more real and fair financial information,and some scholars hold the view that Country Garden has a motivation of earnings management and opportunistic behavior.Based on this,this paper analyzes the new revenue treatment methods and influences of Country Garden,which has important research significance and reference value for the application of new revenue standards in China's real estate enterprises.This thesis mainly adopts the case analysis method.Through the case analysis of Country Garden,it is explained the influence of Country Garden's adoption of Hong Kong's new revenue standard in advance,it introduces the expected impact of adopting the new revenue standard on China's real estate enterprises,and proposes measures to deal with the new revenue standards.The thesis mainly consists of three parts.The first part mainly introduces the relevant theories of revenue standard applied in the real estate industry,explains the particularity of revenue processing of real estate enterprises,and analyzes the main changes of the new revenue standard,mainly by merging the old revenue standard and construction contract standard.The new revenue recognition model,the five-step method,changes the principle of revenue recognition,replaces the ?risk and reward transfer model? with the ?control transfer model?,and increases the standard for revenue recognition ?within a period of time?;The second part is the application of the principles and methods of the new revenue standard in Country Garden.I analyzes the changes in Country Garden financial data,the disclosure of financial information and corporate tax,and I found that the possible impact has been so significant after the adoption of the new HKFRS 15 and the performance of Country Garden's financial statements is impressive.However,its application to new revenue processing has also attracted widespread attention.Whether the products of Country Garden are irreplaceable,whether the sales contract has an enforceable payment request right,and whether the contract meets the judgment of confirming revenue within a certain period of time,launching a heated discussion in academia.This part analyzes this issue.The third part is the corresponding countermeasures for real estate enterprises to cope with the changes of the new revenue standard.It is proposed that enterprises should strengthen contract management,and promoting the integration of marketing department and financial department is an important way for enterprises to improve their management,Strengthening the disclosure of financial information and tax planning is also an effective means to respond to changes in the standard.Through the case analysis of Country Garden,the following conclusions are drawn:(1)Adopting the new revenue standard of Hong Kong in advance promotes the growth of Country Garden to a certain extent;(2)Country Garden adopts a reasonable method for recognizing revenue for a certain period of time.Its performance growth is a reflection of its real financial information,not the phenomenon that enterprises take the opportunity to carry out earnings management behavior;(3)To strengthen the trust of financial information users,in the implementation of new revenue standard Real estate companies should strengthen the disclosure of contract information.In addition,this paper also innovatively proposes to strengthen contract management through financial integration,so that enterprises can better cope with changes in new revenue standard.