Research On Application Of New Revenue Standard-

In May 2014,IASB issued the new International Accounting Principle,IFRS 15.After that,in December 2015,the Ministry of Finance of China started to revise the income guidelines and solicited opinions from all units.On May 1,2017,the Ministry of Finance officially released the China Accounting Standards No.14-Revenue.The earliest implementation time was January 1,2018.The real estate industry is a supporting industry of China's economy and has an important strategic position and extraordinary profitability.The main source of corporate profits is income,and standardizing the accounting treatment of real estate companies in revenue recognition,measurement and reporting will help to improve the quality of accounting information and more accurately reflect their profitability.In order to achieve the purpose of unified income recognition model and clear income standard,the new income standard uses the "five-step method model" instead of the original "risk reward model".Firstly,this paper introduce the content and feature of new income standard,and analyze the changes in the revenue recognition model,treatment of special contract terms,measurement of price and disclosure of information.Then,regarding to the background,business process and characteristic of the real estate industry,the new income standard will improve financial position and enhance quality of accounting information.After that,this paper introduce the situation,operating and financial position and component of revenue of case company and then,analyze the how new income standard will influence the revenue recognition,measurement and reporting.At last,with applying new income standard,it will require higher information disclosure and contract management and departmental collaboration.Also,it will involve more professional judgement.So,this paper advises the companies which apply new income standard should complete the information disclosure content and format,improve the ability of professional judgement,enhance contract management,complete the form and update finance system.The research in this paper also has shortcomings.During the analysis of case companies,the five-step method was not adopted due to the lack of internal data of the company,and only the data of 2018 was included,which can not explain the long-term influence of application of the new income standard to accounting information.The research in this paper hoped to help real estate companies that are applying the new income standard to better understand and correctly apply.It is also hoped that the research can provide understanding in advance for those have not adopted the new income standards and provide a reference for the application of the new income standard.