The Impact Of The New Revenue Standard On Accounting Treatment And Results In Communication Industry

Economic development and technological innovation promoted the upgrade of industry continually,so transactions have become diversified and complicated.Under the circumstances,the revenue standard has been difficult to meet the real needs,and gradually exposed more and more problems.In response to the changes of the external economic environment and to unify the revenue recognition standards,in May 2014,IASB issued IFRS 15th-revenue from contracts with customers(IFRS15).In July 2017,the Ministry of Finance issued the Enterprise Accounting Standards 14th-Revenue(CAS14,the new revenue standard),maintaining a substantial convergence with IFRS15.The new revenue standard is of great significance to unify the revenue accounting system,to clear the basis of revenue measurement,to standardize the accounting of specific transactions and to improve the information disclosure.As the basic industry supporting national economy and safeguarding people's basic life,the communication industry is in the stage of rapid technological upgrade.Thus,standardizing the recognition,measurement and disclosure of revenue and reflecting the state of operation and profitability of enterprises,are of great significance for enterprises to upgrade technology and promote industrial transformation.This paper first clarifies the background of the subject and the significance of the research,and summarizes the existing research viewpoints to establish the research direction of this paper.Based on the theoretical framework of the revision of the new revenue standard,this paper analyzes the concrete changes in revenue measurement,recognition and disclosure of the new revenue standard.At the same time,this paper determines the internal logic of the "five-step model",and interprets the significance of the accounting treatment of specific transactions and contract costs for perfecting the revenue standard,which lay a theoretical foundation for the further research of the later text.After theoretical analysis,this paper applies the aforementioned theories to the main business of the communication industry to determine the business which changes in accounting under the new revenue standard,and designs case with the above affected business.This paper chooses the digital family project carried out by China Mobile Group D Co.,Ltd,as the background of the case,comparing the differences of accounting results and financial statements between the old and new revenue standard,and analyzes the impact of the revision of revenue standard on the communication enterprises in terms of revenue,cost,expense and operating profit.The research conclusions show that the revision of revenue standard has some positive impacts on business and financial analysis,accounting of new business and matching between cost and revenue of communication enterprises,which improves the authenticity of profit disclosure,and promotes the re-evaluation of marketing arrangements by enterprises.But under the accounting method of the new revenue standard,communication enterprises may pay taxes ahead of schedule.And the effectiveness of information gotten by external information users can also be affected.Therefore,this paper suggests that communication enterprises should accurately analyze the impact of the revision of revenue standard,and strengthen the accuracy of revenue analysis.At the same time,communication enterprises should reassess and adjust the proportion of resource delivery in social channels,budget arrangements and capital plans timely.In addition,communication enterprises should advise financial staff to participate in the formulation of marketing arrangements,and the information system should be reformed to realize the automatic splitting and matching of performance obligations in marketing arrangements.Regulators should strengthen the audit of information disclosure,and encourage communication enterprises to disclose the calculation method and measurement standard of amortization period.This paper sorts out the business which is obviously affected by the revision of revenue standard to design a comprehensive and complete case,in order to focus on the impacts on the communication enterprises for the revision of the revenue standard.In addition,this paper,which the accounting results were reflected on the financial statements,conducts analysis from the income structure,project profits and other innovative aspects,and conducts further research from the business,finance,information disclosure and other aspects.These contents of this study are innovative.