Research On Revenue Recognition And Measurement Of Construction Companies Based On New Revenue Guideline As A Case Of X Construction Companies

At present,the domestic development model has gradually changed,the national economy has entered a new normal,urbanization has entered a new period of "innovation,coordination,green,opening and sharing",and the change of macro-environment has provided new business opportunities with construction enterprises,and put forward higher requirements for the management of construction enterprises in the meantime.The particularity of accounting and financial information disclosure of construction enterprises makes them become the most affected industry by the new revenue standards.Since the promulgation of the new revenue criterion in July,2017,most listed or unlisted construction companies still used the old revenue criterion,besides,most of the existing studies have made suggestions on how to adapt to the new revenue criterion for the construction industry,while few have made suggestions on the new revenue criterion itself and its application guidelines.This paper will deeply analyze the changes of revenue recognition and measurement before and after the implementation of the new revenue criterion of X Construction Company,and hope to make suggestions on the new revenue criterion and its application guidelines.Based on previous studies,this paper chooses listed X Construction Company as a case to analyze the status of revenue recognition and measurement under the old revenue criterion,and compares the situation of revenue recognition and measurement under the new revenue criterion.Through the use of document review,comparative syudy and case study,first of all,extensive reading of a large number of relevant literature and analysis of the background of the issuance of the new revenue criteria,through the "five-step" model to elaborate the basic content of the new revenue criteria and the comparison between the old and the new income criteria;Secondly,this paper discusses the production and operation characteristics of construction enterprises and the characteristics of revenue recognition and measurement which are different from those of other industries,and makes a detailed analysis of the impact of revenue criteria on the construction industry from six aspects: capitalization of contract cost,measurement of completion progress,revenue measurement,timing of revenue recognition,treatment of contract changes and disclosure of information;thirdly,it focuses on the six aspects of the impact of the new revenue criteria on the construction industry to analyze the changes in the recognition and measurement of enterprise revenue before and after theimplementation of the new revenue criteria;Finally,the paper finds out the problems and shortcomings of the new revenue criteria in the practical application process,and tries to provide reference suggestions for the new revenue criteria and its guidelines.The research results of this paper will also be more conducive to the new revenue criteria and application guidelines serving construction enterprises.