Discussion On The Application Of New Revenue Standards In PPP+EPC Project

After the ifrs 15 standard was released in May 2014,China’s "Accounting Standard for Business Enterprises No.14-Revenue" standard(hereinafter referred to as the "new revenue standard")was also released,and it is stipulated that in 2021,Chinese enterprises should implement the standard.The new income guidelines combine the original income standard with the standards of construction engineering contracts,and established income model applicable to a variety of industries,which affects many industries.Among them,the construction industry has a greater impact.In recent years,the government has cooperated with enterprises to jointly build a lot of public infrastructure,which has led to the development of the construction industry.PPP+EPC is a hot mode of cooperation between the government and enterprises,It has the characteristics of PPP mode and EPC mode.which has many advantages.Therefore,it is particularly important to reasonably recognize the income of PPP+EPC projects.The new revenue criterion belongs to the principes-oriented model,which has carried out a relatively large change on the basis of the old revenue criterion,put forward new concepts and terms,involving more professional judgment,and increased the difficulty of accounting.Especially in the application of projects,enterprises need to analyze the core concept of the new revenue criteria,and there are great changes in the revenue accounting of PPP+EPC projects.So in this thesis,the project company how to apply "five steps" model of the new income principles do the detailed analysis,and combined with the new income principles in a H the difficulties existing in the application of project application,for later introduced corresponding income standards application guidelines provide a reference case,also enriched and developed the accounting research fields and direction about income,also provide a reference for application of new income standard for business enterprises,It is of certain significance for enterprises to carry out PPP+EPC project management in the future.This thesis mainly adopts case study method,with yi chun city H project as an example,application of new income criterion established new revenue recognition model "five steps" model,to rethink H income of project construction and operation periods recognition and measurement,analysis the project company from old income criterion to use the new income principles which will produce a change,and summarizes the difficulties existing in the practical application,And put forward practical suggestions for the difficulties one by one.By comparing the enterprise data of the old and new revenue criteria,it is found that the change of accounting rules of the new revenue criteria has a great impact on the identification of performance obligations and the calculation of performance progress,and then affects the contract income of enterprises.Therefore,enterprises should fully consider the impact of revenue recognition brought by the new revenue criteria when applying the new revenue criteria.The main contributions of this thesis are as follows: on the basis of existing research,it further summarizes the changes brought by the new revenue criterion to the contract management,project separation and revenue cost recognition of PPP+EPC projects,and studies how to apply the new revenue criterion in PPP+EPC projects to achieve application innovation.Summarize the difficulties existing in the practice of applying the new revenue criteria for PPP+EPC projects,and put forward feasible suggestions for improvement from the perspective of enterprises and relevant departments.