Case Study On The Impact Of New Income Standards On The Recognition Of LD Construction Income

In the context of the market economy,the problem of revenue recognition of enterprises has always been a matter of widespread concern in all sectors of society.As the economic situation continues to be complicated,the increasingly diversified trading methods continue to deepen,and the original income guidelines have been unable to provide more guidance.In 2014,IASB and FASB,after years of consultation and consultation,revised and issued the new international standard IFRS 15(Customer Contract Revenue Criteria),which combines the advantages of US GAAP and International Accounting Standards,which is an international commercial enterprise.A new single contract revenue recognition model has been created: an enterprise should recognize the relevant income when it fulfills its performance obligations,that is,when the contract customer can lead all relevant rights of goods or services.Subsequently,China also sought to revise the issue of how to confirm the income generated by the contract between the enterprise and the customer.On July 5,2017,the Ministry of Finance revised and issued the “Accounting Standards for Business Enterprises No.14 – Revenue”.Since then,the construction contract(CAS15)and the income contract(CAS14)have a unified revenue recognition model.In recent years,the construction industry's transaction matters have become more and more complicated,which undoubtedly makes it an industry that is greatly affected by the revision of the standards.According to the regulations,China's new income standards began to be implemented on January 1,2018.Different enterprises implemented in batches,providing opportunities for many small and medium-sized construction companies to buffer and learn.A change in the revenue recognition model means that both the time when the company's revenue is recognized and the amount that shou LD be confirmed will change.This paper begins with the analysis of the impact of the different methods specified in the standard on the revenue recognition of case companies under the new revenue criteria.The article firstly sorts out the proposed process of the new international standard IFRS 15 and the related research after the introduction of China's new income standard.Then it introduces the main contents of the new income standard and the original standard,discusses the principle differences between the two,and further explores the income from the income.The impact of the difference is further on the impact on corporate profits,tax burden,and even corporate value.Next,take LD construction company as an example to confirm that its construction business applies different income recognition methods under the new and o LD standards,analyze the case,compare different The impact of the method on corporate profits,cash flow,and accounting information quality.Finally,it raises difficulties and suggestions for LD construction companies in applying the new standards,and concludes that LD construction companies apply new income standards and increase income measurement to some extent.The accuracy of disclosure,the appropriate reduction of revenue recognition,but this will undoubtedly make LD construction company and even its parent company financial accounting treatment face greater challenges.Therefore,this paper puts forward suggestions from many aspects,and hopes to improve the authenticity and reliability of enterprise accounting information through various levels of more detailed normative interpretation,more active and effective supervision environment,more professional and professional ethics practitioners,and promote new The income standard is effectively implemented throughout the industry.