The Impact Of The New Income Criteria On The Accounting Of A Construction Enterprise

In September 2017,the Accounting Standards for Business Enterprises No.14--Revenue was promulgated by the Accounting Department of the Ministry of Finance,and it will be implemented first for enterprises listed at home and abroad in 2018.The new revenue standards set a unified standard for various industries,and further promote the convergence with international revenue standards.The new revenue criteria are more conducive to the solution of the problem of the timing of the revenue recognition in the construction industry.It solves the problem that the period of the revenue recognition is not clear enough.It can avoid the problem of the enterprise’s income cross period,and it is also beneficial to prevent the problem of the artificial control of the profit statement and the inflated income or tax avoidance.On the basis of combing the literature,this paper expounds the content of the new revenue criteria,and compares the new revenue criteria with the international revenue criteria,and the new revenue criteria with the old revenue criteria.Then,it analyzes the impact of the new revenue criteria on the accounting of A construction enterprise,such as revenue recognition,financial management and tax payment.Then,the new income criterion is used to analyze the business accounting of the construction industry.Finally,the paper puts forward some suggestions and safeguard measures to optimize the accounting of A construction enterprise under the new revenue criteria.The conclusion of this study is a useful supplement to the literature on how construction enterprises deal with the impact of the new revenue criteria.The study has guiding significance for the improvement of revenue recognition,measurement principles and enterprise financial management in the construction industry to adapt to the new revenue criteria,which is beneficial to promoting the improvement of accounting information quality in the construction industry and promoting the orderly development of China’s construction industry.