| The new revenue standards issued by the ministry of finance in our country on July 5,2017.The new revenue standards replaces the existing revenue standards and the construction contract standards,unifies revenue recognition model,solves the potential problems under the current standards to some extent,such as difficult to distinguish the existing labor contract and construction contract.The new revenue standards determines the “five-step” revenue recognition model,no longer distinguish business types.The existing standards are difficult to determine the risk reward points.The new revenue standards take the transfer of control rights as the income recognition standard,replace the risk reward transfer,change from the income expense view to the asset liability view,make a clear standard for the income recognition and measurement,and maintain the convergence with the international standards.The new revenue standards will have a certain impact on many industries in China,among which the construction industry has the characteristics of long construction cycle and complex environment.Under the construction contract standards,the revenue treatment is based on the construction contract standards,the completion progress is determined by the completion percentage method,and the income is recognized within a period of time.The new revenue standard unifies the revenue recognition model,no longer confirms the construction enterprise in general time period,the measurement method of the completion progress also changes,the new revenue standard also makes a more detailed provision on the accounting guidance,which will have a huge impact on the accounting treatment of the construction industry.Taking the construction industry as an example,this paper analyzes the evolution of China’s revenue standards,the differences between the current revenue standards,construction contract standards and new revenue standards,and believes that the new standards provide more detailed guidance on accounting revenue recognition,measurement and statement disclosure.Analysis of China’s current construction industry business characteristics,business processes and construction contract standards under the existing problems,based on this case company introduction.Taking group A as an example,this paper analyzes the impact of the new revenue standards on the revenue recognition and measurement,financial information and accounting information quality of the construction industry.In terms of revenue recognition and measurement,the contract cost capitalization should be clearly defined to reduce assets and increase expenses;The cost method or input method is adopted in the progress of contract performance to remove the costs irrelevant to the performance obligation,so as to reduce the progress of contract performance and delay the income;In terms of income measurement,the transaction price under the new income standard is not the contract price,which will include the situation of artificial income manipulation in professional judgment;Revenue recognition point on more specific;In terms of contract change,it is clearly pointed out that retroactive adjustment has confirmed income,and the increase of contract price will lead to the advance of income.In terms of financial information,the new income criterion makes the income and cost of different periods change,and has an impact on the current profit.The implementation of the new income standards will improve the reliability and comparability of accounting information,but there are a lot of professional judgment will weaken the prudence.Advice should be taken to improve accounting personnel professional quality,strengthening contract management,perfect the enterprise information system and internal control,if necessary,adjust the enterprise strategic measures,such as regulators should be familiar with the rules as soon as possible,standardize income,more specific guidance for construction industry,to the professional judgment to make corresponding constraints,to ensure the smooth implementation of new income standards. |
