Research On The Revenue Confirmation Of Construction Industry Under The New Revenue Standard

The timing of revenue recognition has always been a problem in the revenue recognition of the construction industry.The question of whether it is in the current or next fiscal year is not clear enough,which will inevitably lead to the confirmation of revenue in advance or late.It is possible to manipulate profits.In order to solve the defects and doubts that have always existed in the process of revenue recognition,the Ministry of Finance of China promulgated the new "Accounting Standards for Business Enterprises No.14-Revenue" in 2017.The new revenue standard provides unified income for all walks of life Confirm the standard.Under the new revenue standard,the revenue standard and construction contract are unified,which makes the financial information more comparable.Under the situation of increasingly fierce competition,this paper analyzes in detail how the construction industry responds to the changes of income standards,and what impact these changes have on the construction industry.This article starts with the background of the formulation of the new income standard and discusses the basic content of the new income standard.Secondly,the new and old standards are compared from five aspects: the scope of application of income,recognition standards,recognition time,accounting treatment of specific transactions(or events),presentation and disclosure.Then,in view of the impact of the new income standard on the construction contract,this paper analyzes the impact of the new income standard on the revenue recognition and financial information of the construction industry from the four perspectives of contract recognition unit,time point recognition,measurement method and contract capitalization.Then,it expounds the expected impact of the new revenue standard on the construction industry,and focuses on the analysis of revenue recognition under the new revenue standard of China Railway Construction Corporation,analyzes the five aspects of contract performance progress,measurement method,contract recognition unit,contract change and variable consideration,and points out the impact of the new revenue standard on the financial information,operation and management of China railway construction.Finally,the paper summarizes the article,and makes suggestions from the external environment,internal control,personnel construction and other aspects of the construction industry companies,so that enterprises can better deal with the impact of the change of income standards on enterprises.The practical significance of this paper lies in the analysis of the problems and difficulties existing in the current revenue recognition and measurement principles of China’s construction industry,and the impact of the new revenue standards on the revenue recognition and disclosure of China railway construction.It provides practical suggestions for the revenue recognition and measurement of the construction industry,and then improves the quality of accounting information of the construction industry,which is conducive to the healthy development of China’s construction market exhibition.