Research On The Accounting Impact Of The Implementation Of New Income Standards On Construction Enterprises

The construction industry is the pillar industry of the national economy,providing an important material basis for all sectors of the national economy,and it has enormous profit potential.The profit is mainly realized through income.Only the treatment of revenue recognition,measurement and disclosure of construction enterprises can reflect the operation status of the company objectively and accurately.At present,China's construction enterprises mainly recognize the construction contract income according to the "Accounting Standards for Business Enterprises No.15-Construction Contract",and the income measurement is usually based on the percentage of completion method.The construction contract standard has less guidance on the factors that should be considered in the income measurement,which makes the construction enterprise often rely on the subjective judgment of the accounting personnel to cause the quality of the financial information to be unstable when actually confirming and measuring the income amount.In order to continue to maintain convergence with international accounting standards and to adapt to the development of trading transactions in the new economy,the Accounting Standards for Business Enterprises No.14-Revenue(New Income Standards)was officially introduced in July 2017.The new income standard unifies the revenue recognition standard,and the control transfer replaces the risk and reward transfer,effectively improving and improving the quality of financial information.This paper systematically sorts out the income-related literature,grasps the status quo of income research at home and abroad,and then clarifies the research direction of this paper.Starting from the changes and development of the income standard and the construction contract standard,the theoretical characteristics of the new income standard and the reasons for the revision are introduced,which lays a theoretical foundation for further research.In the process of analyzing the core differences between the new income standard and the construction contract standard for income processing,the accounting impact of the construction company's implementation of the new income standard on revenue recognition,measurement and disclosure is discussed in detail.In addition,China Railway Construction,which has implemented the new revenue standard,is introduced into the case to interpret China's iron construction revenue accounting model.On this basis,in order to more intuitively see the different results formed by following two different criteria,this paper obtains the accounting data and related information of XM construction enterprise H project through field research,according to the construction contract standard and the new income criterion.The H project was accounted for and the financial data and indicators were compared.Based on the results of the H project simulation implementation of the new income criteria,this paper finds that the new income standard solves some problems in the current construction enterprise revenue recognition and measurement,and brings a series of financial consequences.Finally,this paper puts forward relevant suggestions for the construction enterprises to implement the new income criteria,Summarize the research results of this paper and the areas that need to be improved,and then lead to the direction and prospect of follow-up research.Through research,this paper believes that there is indeed discomfort in the accounting treatment of income in the construction contract standard,and it is not possible to properly guide the revenue recognition and measurement of construction enterprises.The implementation of the new income standard will not only make up for the discomfort of the construction contract standard,but also lead to a series of accounting changes.The full implementation of the new income standard will inevitably have a significant financial impact on the construction enterprise.This paper is based on a case study of the construction company's simulation of the implementation of new revenue standards,and hopes to contribute to the smooth implementation of new revenue standards.