Research On The Revision Of Income Guidelines

Revenue is an important factor influencing corporate profits and is highly valued by investors,creditors and other stakeholders.The project —how to scientifically recognize and measure income to ensure that the real and reliable reflection of income information in the financial statements —has always been the focus of financial reporting theory framework researchers and accounting standards makers.With the development of the economy,some of the problems of the current income guidelines are gradually revealed.Such as the inability to distinguish between labor contracts and construction contracts,risk and remuneration transfer regulations are too abstract so that it is difficultly in practice,and emerging industries are increasingly emerging,increasingly complex transactions,etc.The current guidelines can't give these industry income recognition standards guidance to reduce the quality and comparability of accounting information.FASB and IASB jointly issued IFRS 15-Income from Customer Contracts(IFRS15).In this context,the Ministry of Finance on December 7,2015,by drawing on the core elements of IFRS15,combined with China's actual situation,drafted the "Accounting Standards for Business Enterprises-Income(Amendment)(CAS14 Draft)".The release of the draft facilitated the international convergence of China's accounting standards and unifies the models and steps for revenue recognition in various industries.The implementation of the new guidelines will lead to changes in revenue and confirm the amount of change,and indirectly affect the business situation and financial situation.Opinions on the understanding of accounting staff and professional also put forward higher requirements.This paper expounded the necessity of the revision of Chinese income guidelines from the practical application of CAS14 and CAS15,the requirements of information users and the revision of international income rules,and compares the similarities and differences between CAS14 Draft,CAS14 and CAS15.According to the content of the draft,with reference to IFRS15,and the current guidelines for comparison,this paper made an in-depth analysis for the draft.Then we explored the impact of the draft on industry,company,financial and regulatory bodies.Lastly we suggestions have been made on further refinement of the revision of the guidelines and how enterprises respond to the revision of the guidelines.