TA Study On Revenue From Long-term Contracts Accounting

As an important factor in the income comprehensive statement, income has attracted much attention from the researchers on theoretical framework of financial reporting and accounting standards setters. After the Exposure Draft on Revenue from Contracts with Customers in 2010 and 2011, IASB released the Standard Revenue from Contracts with Customers on May 28,2014. Under the background of sustained international convergence of accounting standards, this paper has analyzed the contract revenue recognition, measurement and disclosure of long-term contracts.In this paper, I have used the traditional normative research method. I have elaborated the research background and meaning, while indicating the structure, innovation and disadvantages in Chapter I. Chapter II has elaborated the theory of contract revenue accounting, clearing definitions, scope, characteristics and basic questions of long-term contract revenue accounting. Chapter III has introduced the current situation of China’s long-term contract revenue accounting. Chapter IV has elaborated the International Accounting Standards in the evolution of contract revenue accounting, introducing the reformed content of contract revenue accounting. Chapter V has presented recommendations for the reform of China’s long-term contract revenue accounting, including the future reforming direction and the related specific measures. Chapter VI has summarized the full text.The main part of this paper is the introduction of the content of the accounting reform of long-term contract revenue according to IFRS 15. By identifying the contracts with customers and the performance obligations in the contracts, the entity confirms the revenue when the control of related service has been transferred to the customer. The entity takes transaction price as measurement attribute in contract revenue, and allocates the transaction price to the separate performance obligations in income measurement. Meanwhile, the entity pays much attention to disclosing sufficient information on long-term contracts to provide better accounting information for users of financial reports.The innovation of this paper is to propose some specific reform proposals on the revenue of long-term contracts from the aspects of measurement attributes, measurement methods and information disclosure, by comparing international income guidelines with our current accounting standards. China should make full use of the development of international accounting standards to promote the reform of the accounting system, and further improve the quality of accounting information.