The Impact Of The New Revenue Standards On Revenue Recognition And Management Of Telecommunications Enterprises

Income has great significance to enterprise financial management and internal control.Economic development and technological innovation continue to promote industrial upgrading,transactions have become more diverse and complex,and the original income standards are becoming more and more difficult to meet the changing needs.In addition,before the revision of the standards,the two sets of accounting standards,International Financial Reporting Standards(IFRS)and Generally Accepted Accounting Principles of US(GAAP of US),revenue recognition lack comparability between different enterprises,industries and capital markets.In order to adapt to the changes of the external environment and unify the revenue recognition standards,the International Accounting Standards Board(IASB)and the Financial Accounting Standards Board(FASB)jointly issued the International Financial Reporting Standard No.15-Revenue from Contracts with Customers.China’s revenue standards have also been revised and China Accounting Standards No.14-Revenue(CAS14)have been issued.The new revenue standard has made major adjustments in revenue recognition,contract provisions for different types of transactions,presentation and disclosure,which has had a great impact on many industries.Among them,due to the wide variety of services and multiuser agreements in the telecommunications industry,the business processing is very complex,especially affected by the new revenue standard.This paper selects Y company,a group branch in the telecommunications industry,as the research object to explore the impact of the new income standard on its income recognition and management and countermeasures.Firstly,this paper combs the improvement and theoretical research basis of the new income standard;Then take Y company in telecommunications industry as an example to explore the impact of the new income standard on its main business income recognition,financial status,operating results and operation management;Finally,from point to area,combined with China’s telecommunications industry and case companies,this paper puts forward effective suggestions for the telecommunications industry to deal with the changes brought by the new income standard.The results show that:(1)the new revenue standard is based on the accrual basis,asset liability view and other theories,takes the "transfer of control" as the revenue recognition standard based on the contract,carries out the revenue recognition through the "five step model",and revises the revenue recognition standard and measurement method of terminal binding,integral reward,e-ticket sales,social channel remuneration and other businesses;(2)The implementation of the new income standard makes some accounting items in the balance sheet and income statement need to be reclassified or recalculated,and the financial indicators such as the company’s debt ability,profitability and operation ability are stable as a whole;(3)The new income standard puts forward higher requirements for the operating management assessment of enterprises.Based on this,the article puts forward:(1)the company should comprehensively report the disclosure matters,make report users understand the specific changes of accounting subjects and financial indicators affected by the new income standards,and strengthen the audit and supervision of income information disclosure by the regulatory authorities;(2)The company shall further standardize the management regulations,such as strengthening the approval management of contracts,improving the accounting information system and performance evaluation mechanism,innovating marketing design,etc.,to adapt to the changes of standards;(3)Pay attention to the communication between internal personnel and the training of professional knowledge of financial business personnel to ensure the accuracy of financial judgment.