Research On The Financial Impact Of The New Income Accounting Standards On Real Estate Companie

In 2017,the new Accounting Standards of Business Enterprises No.14 –Revenue(CAS14(2017)),which has a direct bearing on the financial position and sustainability of operations,has been systematically amended.Due to the particularity of the real estate industry and the complexity of marketing,it has been greatly impacted under the new accounting standards.Therefore,it is necessary to deeply analyze it,so as to establish a good basis for further development and standardization.From the point of view of revenue recognition,change of revenue standard and function of new revenue standard,this paper compares the difference of new revenue standard in revenue recognition and measurement through empirical study of A-share listed companies.The conclusion is as follows: The new accounting income criterion of Vanke House is mainly embodied in:(1)improve the income recognition and measurement methods.Instead of using the time slots method to determine sales revenue,Vanke uses the time slots method to determine revenue at the time of the transfer of control,thus achieving a point of time uniformity and capitalization of contract acquisition costs and major financial components.(2)New financial statement items.The inclusion of "contractual obligations" in the balance sheet leads to a reduction in the proportion of the asset and the proportion of the firm’s total assets,a substantial increase in the net profit as a result of the capitalisation of inappropriate selling costs,as well as an explanation for the incomplete disclosure.;(3)The financial indicators are improved.Vanke realizes earnings management by adjusting income measurement,increasing operating income and net profit,and sets higher requirements for solvency,and profitability;(4)Capital market volatility.Vanke’s cumulative excess returns on capital markets have increased and played a positive role.Therefore,this paper suggests that when implementing CAS14(2017),We should be aware of the change of the economic content,if the cost of the contract is consistent with the reality,and enhance the publicity of the accounting information,so as to enhance the finance management and the sustainability of the other real estate companies.