Research On The Financial Impact Of New Income Standards On J Real Estate Enterprises

With the development of global information technology,many new industries have emerged one after another,and the income that enterprises focus on has also changed accordingly.For a company,revenue can be used as the main indicator to measure profitability,and both business managers and investors attach great importance to it.As a carrier,financial statements can comprehensively reflect the company’s operating and financial status within a certain period of time.By understanding relevant financial information,managers can improve the operation and management capabilities of enterprises and improve economic benefits;investors can decide their own investment behaviors based on the financial situation they have learned.Enterprises need to prepare financial statements in accordance with the "Accounting Standards for Business Enterprises",so changes in standards have a great impact on enterprises.With the changes of the times,my country’s income standards have also been revised several times.In July 2017,the Ministry of Finance revised the income standards and issued a new income standard called CAS14(2017).The real estate industry is the mainstay of our country’s economy,and income confirmation has always been a key concern and a difficulty in practical handling.After the implementation of the new income standard,the appropriate income recognition processing of real estate companies and the financial impact of the new income standard on the company are the focus of this paper.The real estate industry is the mainstay of our country’s economy,and income confirmation has always been a key concern and a difficulty in practical handling.After the implementation of the new income standard,the appropriate income recognition processing of real estate companies and the financial impact of the new income standard on the company are the focus of this paper.This paper uses a case study method to study the financial impact of the application of the new income standard on real estate companies.Select J real estate that has adopted the new income standard on January 1,2018 as the research object.Firstly,we compare the different income recognition methods before and after the application of the new income standard by J Real Estate,which shows that different income types will be affected to different degrees.Due to the change in the method of determining revenue,the application of the new revenue standard can bring an increase in operating income to J Real Estate in the short term,but in the long run,this increase is not sustainable.Then it is found that the financial statements after the implementation of the new income standard have added items such as contract assets and contract liabilities,and the amounts of other projects have also been adjusted.The impact of the enterprise,it is found that the application of the new income criterion has a certain impact on the solvency and profitability of the enterprise.Through the analysis of the event study method,it is found that the implementation of the new income standard has a negative impact on the short-term performance of J Real Estate.In addition to these,it is also found that the implementation of the new income standard has narrowed the difference between J Real Estate’s accounting treatment and tax treatment.Revenue-related key audit matters have also been changed in the audit report.Finally,some suggestions are put forward according to the difficulty of applying the new income criterion.This paper analyzes from different angles,and puts forward corresponding solutions,hoping to play a certain reference role for similar companies when implementing the new standard.