Application Of The Accounting Treatment Of Contractor's General Contracting Enterprises

Since the outbreak of the economic crisis, the level of development of global economy is not balanced. There have been relatively strong recovery momentum in some developed economies such as European Union, Japan and other American. For example, moderate growth arises in American and Japan and there is also new economic recovery signs in Euro zone. However, the engine of the world economy has not been all high-speed turn up. The economic growth of Brazil, ASEAN and other emerging economies continued to slow. Current demand on the international market is still much less than previously. The world economy is still in the stage of adjustment and gradually restored, there exist obvious differences in the internal structure of the countries and areas in the world, regional development status is more differentiation. It would be a good choice of strengthening undertaking general contract project of EPC based on the strong industrial of China to ensure the rapid growth of economy in the downturn of international environment.It's difficult to regulate the different types of "construction contract" adopted by different enterprise in practice. Adopting of a large number of international standards IAS11 "construction contract" can only solve the problems in practical operation temporary and is not suitable for the current situation in China. There are 23 enterprises of Mainland China in the world top 100 general contracting enterprises, which is announced by ENR in 2013. It is expected the figure will continue to increase in 2014. According to the ranking list, most of the enterprises of China is also rising and the place of projects of general contracting is also rising in the country's overall economic status.That's why we must take seriously for all kinds of issues in the current CIS15 "construction contract" faced in practice, improving the standards constantly, so as to make the theory and practice into a virtuous cycle.The article summarizes the difficulties of EPC enterprises in accounting treatment and presents some novel methods to the solution through a real case. We expect the quality of the accounting information of EPC enterprises would be improved through the changing some of the existing accounting criteria, which could help the user of accounting statement make more rational decisions.