Research On The Application Of Income Criteria In Suning.com

With the continuous development of Internet technology,the business scale of e-commerce enterprises is gradually expanding,business types are also becoming diverse,gradually occupying the traditional offline retail market,and playing an increasingly important role in the daily life of residents.The development of e-commerce enterprises promotes the development of market economy,enriches the employment channels,makes the residents' purchase of goods no longer limited by space,and facilitates the way of life.However,due to the differences between e-commerce platform transactions and entity point transactions,there are various business types and special transaction methods,which makes the old revenue criteria difficult to be well applied in the process of revenue recognition and measurement of e-commerce.Income is the key factor to reflect the business operation of enterprises.Only when the income standard is revised in combination with the new industry can it be widely used among different industries,so as to achieve the purpose of reflecting the real operation of enterprises.By improving the quality of accounting information disclosure,we can release the right signals and guide the rational allocation of resources.Therefore,it is urgent to revise the accounting standards suitable for e-commerce enterprises.In 2014,FASB and IASB issued new income standards to the outside world at the same time.Under the background of internationalization convergence of accounting standards,China combined with its own situation and kept the basic framework of international standards,fully listened to the opinions of all parties to develop new income standards.For domestic listed enterprises,since January 1,2020,due to the universality of the applicable objects of the spatial criteria,the enterprise managers are often provided with independent judgment and choice space in the process of formulation.This provides the conditions of earnings management for the recognition of enterprise income.Based on the analysis of the flexible rules in the new income standard,this paper selects Suning e-commerce,a domestic listed company,as a case company,to study the four types of income modes of its e-commerce business,i.e.sales of goods or services,provision of sales platform and advertising services,and member services.This paper analyzes that when managers seek their own interests and receive external competition pressure,in order to show a better business image to the outside world,in the process of applying the new income standard,enterprises should make use of the flexibility of the standard and choose the way of maximizing their own interests to recognize income.In the process of income recognition,there are ways of confirming income by the time point of income recognition in advance and the total amount method This paper analyzes the impact of this kind of earnings management behavior and puts forward improvement suggestions from three perspectives of policy makers,regulators and enterprises.