A Study On The Application And Impact Of The New Revenue Criterion In C Software Companies

In order to keep convergence with the International Accounting Standards,Ministry of Finance of the People's Republic of China had issued New CAS14 in July2017.The central change of the standards that put forward the "five-step method" model,which stipulates that all domestic listed companies begin to use it since January 1,2020.Therefore,discussing and researching the application and influence of New CAS14 in the enterprise has great realistic meaning and application value.Due to the complexity of its business model,the innovation of market finance and transaction mode,the methods of revenue recognition and calculation of software enterprises are inconsistent all the time.In addition,because there are no listed software companies at home,and the paper is written when domestic listed companies implement New CAS14 fully,this article chooses for C software company as an example to analyse applications and effects of CAS14,for which implements New CAS14 for the first time on January 1st,2020.It reduce 430 million profits in the beginning financial statements getting a lot of attention.And adopts literature analysis and case analysis to study the application and influence of CAS14 in C Company.The article is based on the Economic Consequences theory,Revenue-expense view and Asset-liability view and contract theory,combining with the main content of the CAS14.It used literature study and case study method to analysis the application of the CAS14's "five footwork model" in C company.We come to the conclusion that it has brought influences in its accounting treatment,financial statements,operating management and accounting information quality mainly,through the analysis of the change of C company before and after the implementation of the CAS14.According to the above,The last part is the suggestion to implementing the CAS14 from three angles with enterprises,the department of setting standards and regulatory departments,but also for the businesses have not yet implemented the new CAS14 to bring some reference significance.The contribution of this paper is as follows,on the one hand,many domestic scholars have done a lot of research on the new revenue criteria,but there are few case studies on CAS14 in domestic software enterprises.Therefore,this paper has enriched the application research of CAS14 in specific software enterprises to a certain extent.On the other hand,this study is in the first year of the implementation of CAS14 for domestic listed companies,and there is not literature on the implementation of CAS14 for domestic listed software companies.Therefore,it is timely to study the application and impact of CAS14 in domestic listed companies at this time.