The Impact Of New Revenue Standards On Income Accounting And Statement Of The Real Estate Industry

The real estate industry plays an important role in the national economy.With the continuous improvement of our country’s economic level and the increasingly complex transactions in the real estate industry.The original income standards have prominent problems in application interpretation and accounting standards,which make the financial information disclosed by enterprises not perfect,and the systems of enterprise income recognition and accounting are gradually unable to meet the business development of enterprises in the future.Therefore,in order to actively standardize revenue recognition,measurement and information disclosure,Chinese Ministry of Finance issued New Revenue Standards in July 2017.This revision has made a great improvement on the basis of the original revenue standard.The New Revenue Standards has been re-regulated in terms of income accounting,which involves many new concepts and accounting subjects,so it will have some impact on various industries.Under the background of the full implementation of the New Revenue Standards,the real estate industry,as a pillar industry in our national economy,will also undergo huge changes in its income accounting and recognition.Therefore,this paper takes the Vanke Group,one of the first to implement the new revenue standards,as an example,will study the impact of the New Revenue Standards on the income accounting and financial statements of our national real estate industry,so as to offer experience and reference for other real estate enterprises.Based on this,this paper takes CHINA VANKE CO.,LTD.(referred to as "Vanke Group")as the research object by sorting out relevant domestic and foreign literatures on the New Revenue Standards.First of all this paper explains the process and reasons for the revision of the New and Old Revenue Standards in China,compares the contents of the New and Old Revenue Standards,and provides an over iew of the real estate industry and Vanke Group;secondly,this paper conducts an in-depth analysis of the revenue accounting and financial statements of Vanke Group after the implementation of the New Revenue Standards.Through research,this paper finds that:after the implementation of the New Revenue Standards,in terms of revenue accounting,from the revenue recognition,the change in the revenue recognition standards and methods of Vanke Group not only makes the group’s revenue and costs more closely matched to a certain extent,but also improves the ratio of the group’s revenue and cash flow.In terms of revenue measurement,the group’s revenue measurement basis is changed to the transaction price in the contract,which makes the group’s revenue measurement more reasonable;In terms of financial statements,the New Revenue Standards not only makes the disclosure of Vanke Group’s balance sheet more detailed and reasonable,and effectively reduce the debt financing cost of Vanke Group,it also effectively improved the growth rate of cash flow from Vanke Group’s operating activities and financing activities.Finally,based on the previous data analysis,this article makes recommendations to Vanke Group,real estate companies,regulatory authorities and policy-making authorities,aiming to provide a reference for the better implementation and application of the New Revenue Standards in the real estate industry.