Research On The Application And Impact Of NO.14 Revenue Accounting Standards On Software Business Within China Railway Signal& Communication Co.ltd

Research Background:With industrial upgrading and business model innovation,new industries are constantly emerging,thus various transaction matters of enterprises are becoming more and more complicated.Revenue recognition and measurement are facing many difficulties,which need to be revised and improved.The Ministry of Finance released ‘Accounting Standard for Business Enterprises no.14 – Revenue(hereinafter referred to as' The New Revenue Standard')in 2017,bringing about transformation of the recognition and measurement of revenue.The New Revenue Standard will affect different companies differently,so all companies have to assess the extent of these impact.Among them,the software development enterprise is one of the major industries affected by The New Revenue Standard.Research Issues of this paper: Start with the software business model analysis of China Railway Signal & Communication Co.Ltd(hereinafter referred to as' CRSC'),based on accounting problems in the old revenue standard,then research the application and influence of The New Revenue Standard in software business revenue measurement.Among them,"software business" mainly refers to the software system integration business of CRSC;"problems" mainly refers to the accounting information quality problems existing in the recognition and measurement of old Revenue Standard;"impact" mainly refers to the improvement of the accounting information quality problems existing in the old policy in the recognition and measurement of new income Revenue Standard.Research Strategy: Firstly,based on the Accounting Information Quality Requirements and The new/old revenue standards,this paper summarized the Accounting Information Quality problems existing in the old revenue standards: deficiencies in timeliness,prudence and comparability.meanwhile,this paper also summarized the improvement of new revenue standards upon above problems in the old revenue standards.Secondly,this paper analyzes the Software system integration business model of CRSC,and Specific application of The new/old revenue standards upon the Software system integration business of CRSC.Lastly,the Research Conclusion is drawn: in the Software system integration business of CRSC,In the recognition and measurement under the old revenue standards,there are problems of timeliness,prudence and insufficient comparability of accounting information quality,The application of the new revenue criterion can improved above problems in timeliness and prudence within revenue recognition process,but not in revenue measurement process.Reason for insufficient improvement effect is the confirmation method of performance progress in revenue measurement not being accurate enough.Targeted improvement measures can be taken from these two perspectives: internal control and accounting calculation,both measures should be based on the software system integration business characteristics,thus,the accuracy of income measurement and the quality of accounting information will be increased.Research value: The theoretical value is to study the improvement of the revenue accounting information quality by the new revenue standards for the integrated business of CRSC.Practical value is to propose improvement measures which fix the Accounting Information Quality problems existing in the old revenue standards.Innovative point: In view of the deficiencies of information quality under the old revenue standards,this paper proposes two innovative improvement measures: From the perspective of internal control to improve the confirmation of performance progress;From the perspective of accounting calculation to improve the confirmation of performance progress.