Research On The Impact Of New Revenue Standards On ZTE's Financial Performance

In May 2017,the Ministry of Finance of the People's Republic of my country revised the "Accounting Standards for Business Enterprises No.14-Revenue"(hereinafter referred to as the "New Revenue Standards"),which emphasizes the need to reconfirm the revenue recognition standards,recognition timing,and measurement based on contracts.The model,presentation and disclosure are defined.At the same time,it is required to be the first to apply on January 1,2018 for companies that are listed outside of my country and listed at the same time at home and abroad.The communication equipment manufacturing industry is particularly complicated in its revenue accounting due to its complex and diverse business models.Therefore,the revision of revenue standards will have a greater impact on its revenue recognition and measurement and financial performance.Therefore,this article selects the communication equipment manufacturing industry as the research object to discuss and analyze the impact of the new income standard in the actual application process.This article mainly takes the concept of assets and liabilities,the theory of time value of money and the usefulness of financial report decision-making as the main theoretical basis,adopts literature research method,comparative analysis method and case research method,selects A+H shares listed ZTE as the research object,analyzes new The revenue standard affects ZTE's financial performance.First,start with the related theories of the new revenue standard and the main changes of the old and new standards,and discuss the differences between the new and old revenue standards in terms of revenue recognition and measurement;secondly,take ZTE as a case to analyze the typical business before and after the implementation of the new and old standards from 2017 to 2019 Revenue recognition and measurement,comparative study of revenue recognition timing,measurement standards,accounting treatments and changes in financial data and analysis of the reasons;third,for ZTE's financial statement data,compare the impact of the new and old revenue standards on the company's financial status and profitability,and Analyze through three aspects of the company's solvency,operating capacity and profitability.The results of the study found that the application of the new revenue standard not only affects the timing and amount of revenue recognition,but also affects the income structure of various businesses of the company.At the same time,analysis found that the new revenue standard has a positive impact on ZTE's financial performance.In view of this,in view of ZTE's application of new revenue standards,this article proposes three aspects of improving the contract process,improving the professional judgment ability of accountants,and establishing contract performance evaluation.In terms of research on the application of the new revenue standard,this article first set foot in the communication equipment manufacturing company.It not only compares and analyzes the differences in revenue recognition and measurement under different business models under the old and new revenue standards,but also explores the new revenue standard based on ZTE's financial report.With regard to financial presentation and disclosure,the study of the impact of the new and old revenue standards on the financial performance of the company has made the research on the impact of ZTE's application of the new revenue standards more comprehensive and specific,providing relevant reference for other communication equipment manufacturers.