Research On Revenue Recognition Of Real Estate Enterprises Under Cas14-2017

In 2014,IASB issued IFRS15-Revenue From Contracts With Customers and proposed a "five-step" model for revenue recognition,which was a major change in the company's revenue recognition model.China's accounting standards and international financial reporting standards continue to converge,in 2017,the Ministry of Finance issued a new Corporate Accounting Standard No.14-Revenue(CAS14-2017),replacing the original revenue standard and construction contracts standard.The issue of CAS14-2017 has brought about major changes in the way of revenue recognition for the real estate enterprises,and poses a major challenge to the accounting practice processing and financial statement preparation in the real estate business.Based on the institutional background,this paper takes the real estate enterprise housing project as an example.It is considered that the pre-sale revenue of real estate enterprises under the new standard meets the revenue recognition conditions after the pre-sale contract is signed,and the pre-sale revenue should be recognised during “one period” according to the progress of the performance obligation.The new revenue recognition method will cause important changes in the company's financial statement items.The changes are as follows: the amount of assets and liabilities of each fiscal year during the pre-sale period of the project are reduced,the asset-liability ratio is reduced;the revenue can be recognised and the costs can be carried forward during the pre-sale period.There is a better consistency between the main business revenue,net profit and sales cash inflow.Under the input method,the performance progress is related to the measurement and collection of construction engineering costs in each fiscal year of the project construction period.This paper believes that the CAS14-2017 is "principle-oriented",so the requirements in accounting ability and professional judgment of the real estate industry accountants are higher.Real estate enterprises should strengthen information presentation and disclosure,strengthen contract management and project cost management,improve the professional judgment ability of accounting personnel,to accurately measure project engineering costs,and reasonably determine the progress of the performance obligation.