Study On The Impact Of The New Revenue Standard On The Financial Performance Of LC Group

In May 2014,the IASB and IFRS Board jointly issued a revenue standard with the objective of addressing the practical application of the new revenue standard.The implementation of the revenue standard has encountered some difficulties,such as the lack of uniform revenue recognition standards,inadequate revenue measurement methods and the lack of effective supervision,which have hindered the smooth implementation of the revenue standard.In order to align with international accounting standards,the Ministry of Finance promulgated ASBE No.14 I Revenue in May 2017.The output value of China’s real estate industry and its related industries accounts for one-third of the gross domestic product,and the real estate industry occupies a pivotal position in the national economy.As the real estate industry has a complex business model,its revenue accounting is also complex.Therefore,the new revenue standard will have an impact on the revenue recognition and measurement as well as the financial performance of real estate companies,therefore,LC Real Estate Company is chosen as the subject of this paper and the role of the new revenue standard in practice is analysed.This paper mainly uses contract theory and time value of money theory as the main theoretical basis.Using the case study method and comparative analysis method,LC Real Estate Company is selected as the research object to analyse the impact of the new income standard on the financial performance of LC Group,and to propose the problems and solutions of LC Group in applying the new income standard.Firstly,the paper discusses the income situation of LC Group,the changes in the old and new income standards and the application in the recognition and measurement of income,starting from the concepts and theories related to the new income standard and financial performance,and taking into account the actual situation of LC Group;secondly,based on the financial reporting information of LC,the paper analyses the impact of the new income standard on the four aspects of LC’s profitability,operating capacity,solvency and development capacity.The impact of the new revenue standard on LC’s profitability,operating capacity,solvency and development capacity.Finally,in the light of the actual situation of LC real estate companies in implementing the new income standard,advice is given from each of four perspectives: financial staff professionalism,information disclosure,contract management and the establishment of feedback mechanisms.The real estate industry should pay close attention to the progress of the standard,comply with the changes in the standard,keep accounting procedures updated,identify problems in a timely manner and pay attention to the disclosure of information.The results show that the new revenue standard not only affects the status of financial performance indicators,but also has an impact on the timing and amount of revenue recognition and the composition of corporate revenue.The thesis examines the impact of the new revenue standard on the revenue of the LC real estate industry and the measures to implement the new revenue standard in order to provide a reference for other industries to effectively implement the new revenue standard.It is hoped that the real estate industry will take the implementation of the new revenue standard as an opportunity to improve the accounting of the real estate industry and enhance the financial management of the real estate industry,thereby promoting the healthy development of the real estate industry.