The Financial Performance Impact Of Current Revenue Standard On Real Estate Enterprises And Enterprises’ Countermeasures-Case Analysis Based On A Company

As the business models of enterprises became diversified and the forms of market transactions became complex,many problems emerged in the application of the old revenue standard,and the development of a new revenue standard became a general trend.In May 2014,a new revenue standard(IFRS 15)was issued internationally,and in order to be consistent with it,our Ministry of Finance issued in July 2017 the Accounting Standards for Enterprises No.14-Revenue,the our current revenue standard.The current revenue standard is contract-based and uses the "five-step approach" to recognize revenue when "control" is transferred,whereas the old revenue standard recognized revenue when "risk-based compensation" was transferred.The real estate industry has a special business model and plays an important role in China’s national economy.The change in revenue recognition standards has a significant impact on its revenue recognition.The real estate company A selected in this paper implements the current revenue standard starting in 2020.By studying the impact of the application of the current revenue standard on the financial performance of enterprise A,it helps to explore the smoothness of the transition from the old revenue standard to the current revenue standard in the context of the downturn of the real estate industry during the epidemic,and in the process,to explore the possible problems in the application of the current revenue standard and make corresponding suggestions,which provide some reference for other real estate enterprises to apply the current revenue standard and help promote the improvement and development of the current revenue standard.Using methods such as comparative analysis,this paper analyzes the impact of the application of the current revenue standard by Enterprise A in 2020 on its financial performance through three main perspectives: financial statements,business management,and capital markets.The results of the study show that: its opening financial statement items and values are affected,and the changes in balance sheet and income statement values lead to changes in its financial indicators as well,and its financial reporting information is disclosed more comprehensively,which facilitates a more realistic reflection of financial performance;it may engage in surplus management to improve its financial performance,which places higher demands on its contract management in order to truly reflect its financial performance;after the announcement of the implementation of the current revenue standard,its excess earnings and accumulated excess earnings increased,reflecting some improvement in its short-term financial performance.In conclusion,its financial performance has improved somewhat,and it has achieved a smooth transition from the old revenue standard to the current revenue standard.And through this process,we found that there may be problems in the process of preparing financial statements of enterprise A of unreasonable use of the way of recognizing revenue by time period and deviations in the calculation of performance progress,and made suggestions to strengthen the risk control of revenue recognition and improve the financial system of business-financial integration;there may be problems of difficult contract management in operation management,and proposed several measures to strengthen contract management;looking at the capital market reactions may have the problem of ignoring investors’ blind follow-through investments and cannot ignore long-term financial performance,and put forward suggestions to correctly view capital market reactions.