Research On The Application Of New Revenue Criteria In Software Industry

The newly revised "CAS(China Accounting Standard)14-income" Standard was released on July 5,2017,and the new Standard will be implemented in batches for different subjects.The main changes of the new revenue criterion from the old one are the timing of revenue recognition,disclosure and revenue recognition model,etc.At the same time,this revision also takes full account of China's enterprises,for different accounting entities for the batch step by step to promote the implementation.For the software industry,the sales of products(including services)of various software enterprises are often mixed with the sales of tangible products and the provision of services,and the time point of relevant revenue recognition is relatively chaotic,so how to use the criteria to confirm becomes a complex problem.However,with the release of the IFRS(International Financial Reporting Standard)15-income Standard,relevant problems will be solved and gradually unified.Domestic income accounting standards with the new income principles published and implemented gradually dissolve isn't consistent with international norms,maintain the convergence and "IFRS 15-income",reform the existing revenue recognition model,clearly pointed out that the core of the revenue recognition principle,namely:enterprises should actively to perform the contract mentioned in the performance of the obligation,and in the customer access to the control of goods or services for revenu(?)ing H software company as an example,this paper mainly introduces the relevant theories of the new revenue criterion and its application in the software industry from the following six aspects.The first part,introduction.This paper introduces the background and research significance of this topic,clarifies the current research situation in this field by means of literature review,comments on the research results of existing literature in the theory and practice of income criterion,and lays a foundation for the follow-up comparison and evaluation.At the same time,the research methods and content framework adopted in this paper are summarized,and the innovation points of this paper and the deficiency of the research are put forward at last.The second part,the new income criterion revision related theory foundation and the core content outline.This part firstly introduces the concept of assets and liabilities,the theory of economic consequences and other theories,then introduces the core content of the revision of standards,and finally analyzes the differences between the old and new standards.The third part is the background of the case.This part first describes the main development status of the software industry and then introduces the basic situation of H company as well as its operating characteristics and income.The fourth part is the application research of new revenue criterion in software industry-taking H company as an example.First analyzed the applied analysis of H company changes brought by the new income principles,including the performance of obligations and the performance time confirmation,to complete the performance obligations related to the definition,the modification of the terms of the contract,the contract loss respectively to the enterprise system integration business contract processing,technical services business contract processing and software development business processing brought about by the changes.Then it also analyzes the impact of the application of the new revenue criterion on H company,specifically from the impact of revenue amount confirmation,the impact of the balance adjustment at the beginning of the year,the impact of the summary comprehensive income statement,the summary financial position statement and the impact of the main operating performance indicators.Finally,it analyzes the problems existing in the application of the new revenue standard of H company,such as the inconsistency in the judgment of accounting personnel of the enterprise on the performance obligation,the inconsistency in the measurement standard of contract price,and the inadequacy in the presentation and disclosure of income-related informationThe fifth part,the suggestion and the enlightenment part.Specifically,it Suggestions on the application of new revenue criteria for H company.For example,can improve the professional judgment ability of accounting practitioners,unify recognition standards and principles,confirm the contract price with the method that best reflects the essence of income,and timely disclose the revenue recognition method of customized software business and complex system integration business.The second is advice to regulators.The last part is the conclusion.The existing literature on the income criterion research is mainly limited to the real estate,construction industry or telecommunications industry,for the software industry research is very few,has not formed a more systematic conclusion and the new income criterion just a year after the implementation of the implementation of the enterprise,the impact of the criterion is mostly in the prediction stage.In this paper,the specific business contract analysis,in-depth analysis of the new revenue standards on the actual impact of the software industry,revealed the new standards in practice exposed by the relevant issues and impact,so as to the relevant enterprises how to achieve good development under the challenge of the new standards put forward Suggestions.