Study On The Influence Of New Income Standard On The Quality Of Accounting Information Of Real Estate Enterprises

With the rapid development of the market economy and the constant innovation of business models,the initial income criterion(CAS14,2006)could not satisfy the requirements of comprehensive business activities.So as to resolve the problems in applying the old income criterion(IAS18),IASB and FASB jointly issued International Financial Reporting Standards No.15-Customer Contract Income(IFRS15)in May 2014.We have also subsequently set up a revenue standard revision group and revised and issued EAS 14-Revenue in 2017,thus achieving convergence with international financial reporting Standards.This revision has undoubtedly had a profound impact on Chinese enterprises.Real estate enterprises are affected by the new income criterion because of their long construction cycle,diversified collection arrangements,and large proportion of forward housing sales.Under the guidance of the original income criterion,the "risk-reward transfer model" is adopted to recognize income,which leads to the concentration of income at a certain point and the volatility of each balance sheet day.The new revenue standard replaces the "risk-reward transfer model" with the "transfer of control model",and addresses the problems with the previous revenue standard,such as inconsistent revenue recognition criteria and delayed transfers from the balance sheet to the income statement,which will give real estate companies the opportunity to improve their revenue recognition systems and the quality of their financial information.Under the background of carrying out the new income standard in full scale the text lays emphasis on real estate work.This paper will use a combination of empirical analysis and case studies to examine the impact of the new revenue standard on the quality of accounting data for real estate companies.First of all,this paper introduces the research status of domestic and international income standards and the theoretical basis for revising the standards,and points out the important link between the new income standards and the quality of accounting information.The empirical analysis adopts a two-difference model and uses the regression residuals of the modified Jones model as an indicator of the quality of accounting information.The sample was selected from 2016 to 2019.145 A+H shares,A shares(two early applications)and H shares listed real estate enterprises that have implemented the new income criterion were taken as the experimental group,and 95 A share listed real estate enterprises that have not implemented the new income criterion were taken as the control group for regression analysis.The empirical results show that the application of the new income criterion will significantly improve the quality of accounting information of real estate enterprises.Secondly,this paper makes a case study of Vanke Group’s implementation of the new revenue standards,introduces the changes in the content of corporate accounting information financial statements as a result of its revenue recognition policy under the new standard,and further analyses the changes in the quality of Vanke Group’s accounting information as a result of these changes.The results of the case show that following the introduction of the new revenue standard,the Vanke Group’s accounting information is more realistic and objective in terms of both qualitative and quantitative analysis,and the quality of the accounting information has improved.To sum up,it proves that the new income standard will improve the accounting information quality of Chinese real estate enterprises from the perspective of empirical test and case study.In order to ensure the stable,orderly and healthy development of the real estate industry,it is necessary to guide the real estate enterprises to correctly respond to the changes of the new income standards to provide higher quality accounting information.Therefore,from the perspective of real estate enterprises,the following countermeasures and suggestions are provided: strengthen the management of sales contracts,optimize the business process and system,and attach importance to information disclosure.The possible innovations of this paper are two: first,the comprehensive use of empirical test and case analysis to study the impact of the implementation of the new income standard on the quality of accounting information of real estate enterprises,so as to make the conclusion more convincing;Second,the real estate industry as a starting point to discuss in detail the impact of changes in income standards on the specific characteristics of accounting information,refining the research object.