Research On The Application Effect Of The New Income Standards In The Construction Industry

In July 2017,the Ministry of Finance revised and promulgated the Accounting Standards for Business Enterprises No.14 —— Revenue [CAS14(2017)],whose main major changes include: merging the original revenue criteria and construction contract criteria into a unified revenue recognition model;the judgment standard of revenue recognition point changed from risk reward transfer to control transfer;added specific accounting policy analysis of contract assets,contract costs and contract liabilities;and more clear and detailed disclosure of revenue recognition and measurement for some specific transactions.These changes have adjusted the standard of revenue recognition,refined the basis of revenue measurement,clearly defined the method of income distribution,and improved the requirements of disclosure and reporting.After the promulgation of CAS14(2017),it has had a certain impact on all industries.Due to the cancellation of the construction contract criteria,the construction industry is particularly affected.How did CAS14(2017)change in the construction industry business? What is the implementation status of CAS14(2017)in Anhui construction engineering? What impact does CAS14(2017)have on Anhui Construction Engineering in terms of revenue recognition standardization,company management level and accounting information quality?With the above problems,this paper adopts literature analysis method and case study method.First,it analyzes the literature and research on the application and research of income criteria at home and abroad,and comprehensively reviews the motivation,content and application effect of the revision of income criteria.Secondly,we analyzed the implementation of CAS14(2017)from the first implementation of CAS14(2017),its impact and measurement,selected five leading enterprises in the construction industry,and studied the changes of CAS14(2017)in practical application and its impact on the construction industry.Finally,the case study method was adopted to select the application of CAS14(2017)in 2020 as a case,selected the annual report data before and after the CAS14(2017),comprehensively analyze the solvency,operating ability and profitability,and analyzed the data extracted from the financial statements showed that Anhui construction after CAS14(2017),the solvency and operating ability increased,and there is no clear trend in profitability.On this basis,the impact of CAS14(2017)on the standardization of revenue recognition,company management level and accounting information quality is studied and the conclusions are drawn.This paper has yielded three research conclusions.First of all,in practice,the construction industry is greatly affected by CAS14(2017)due to the cancellation of construction contract standards.CAS14(2017)applied by Anhui Construction Engineering in 2020 is more clear than the construction contract guidelines,and the recognition and measurement of revenue is more standardized.Secondly,the change of CAS14(2017)standardizes the recognition and measurement of the income from daily operation and management activities,which helps to strengthen the awareness of enterprise contract and improve the management level of the company.Finally,comparing the old and new standards Anhui Construction Engineering revised and increased the disclosure content,the analysis shows that CAS14(2017)increased the comparability of accounting information and improved the quality of accounting information.On this basis,analyze the problems existing in the practical application of CAS14(2017),and put forward relevant countermeasures and suggestions:standardize contract management;improve governance structure: strengthen external supervision.