2017Year7month19Day Source: Accounting Department of the Ministry of Finance

　　2017Year7month5, the Ministry of Finance revised and issued the Accounting Standards for Business Enterprises14No.——Income》(hereinafter referred to as“New income standards”），This is the revision and improvement of my country’s corporate accounting standards system、Important achievements in maintaining continued comprehensive convergence with IFRS。In order to facilitate understanding and mastering of the new income standards，Ensure effective implementation of the Code，The relevant person in charge of the Accounting Department of the Ministry of Finance answered reporters’ questions on relevant issues。

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Answer:2006Year2In March, the Ministry of Finance issued the "Accounting Standards for Business Enterprises"14No.——Income" and "Accounting Standards for Business Enterprises15No.——Construction Contract》(hereinafter referred to as respectively“Income Guidelines”and“Construction Contract Code”），Income recognition for enterprises、Disclosure of measurement and related information is regulated。Among them，Income standards regulate the sales of goods by enterprises、Income from providing services and transferring asset use rights，Construction Contract Standards regulate the income derived from enterprise construction contracts; income from the sale of goods is mainly recognized based on the transfer of risks and rewards，Income from provision of labor services and income from construction contracts are mainly recognized using the percentage of completion method。However，With the increasing development of market economy、Transaction matters are becoming increasingly complex，Income recognition and measurement face more and more problems in practice。For example，How to divide the boundaries between revenue standards and construction contract standards，How to distinguish between income from selling goods and income from providing labor services，How to determine the transfer of major risks and rewards in commodity ownership，How to distinguish between recognizing revenue based on gross amount or net amount，How to account for complex contracts containing multiple transaction arrangements or variable consideration，Wait。This objectively requires us to improve the current income-related standards，Effectively meet practical needs。

In addition, the International Accounting Standards Board2014Year5In March, the International Financial Reporting Standards No. was released.15No.——Income arising from contracts with customers》(hereinafter referred to as“IFRS No.15No.”), since2018Year1month1Effective from date。This standard reforms the existing revenue recognition model，Highlights that the way an entity recognizes revenue should reflect its pattern of transferring goods or services to customers，The amount recognized should reflect the amount to which the entity expects to be entitled as a result of the delivery of the goods or services，And set up a unified five-step revenue recognition and measurement model，Identifies the contract with the customer、Identify individual performance obligations in the contract、Determine transaction price、Allocate the transaction price to each individual performance obligation、Revenue is recognized when each individual performance obligation is fulfilled。

In summary，In order to effectively solve the specific problems existing in the implementation of my country’s current standards，Further standardize revenue recognition、Measurement and related information disclosure，And maintain the continued convergence of my country’s corporate accounting standards and international financial reporting standards，We draw lessons from IFRS15No.，Based on the actual situation of our country，Revisions form new revenue standards。

　　Q: Please introduce the process of revising and improving the new revenue standard.

Answer: During the revision m88 online sports bettingprocess of the new revenue standards，We always adhere to the spirit of scientific and democratic decision-making，Follow an open and transparent code-setting process。New revenue standards from drafting to release，Going through the preliminary preparations、Drafting、Open for comments、Several stages including testing, modification and improvement。

(1) Early preparation stage (2014Year5Month Solstice2015Year3month).

All the time，We pay close attention to the progress of relevant projects of the International Accounting Standards Board，And combined with positive feedback and suggestions from my country’s practice。2014Year5Month, in IFRS15After the number is released，We have established a revenue standards project team，Have in-depth study and research on it，And launched the revision project of my country’s new income standards。Based on the investigation of the implementation of my country’s income standards，Drafting new revenue standards，After repeated revisions，Yu2015Year3First draft of the monthly formation guidelines.

(2) Drafting stage (2015Year3Month Solstice2015Year12month).

Since2015Year3month，We are working on the first draft of the new revenue standard in stages、There are steps、Adopt various methods to listen to the opinions of accounting firms and enterprises at different levels: first，Organized several accounting firms to hold symposiums，Listen to opinions and suggestions; secondly，For industries that are greatly affected by the new revenue standards，Organize and convene sub-industry symposium，Understand the impact of the new revenue standard on these industries; the third is，Going to Beijing、Shanghai、Carry out field research in Guangdong and other places，Listen to the opinions of enterprises; the fourth is，With the State Administration of Taxation、State-owned Assets Supervision and Administration Commission、Communication with the China Securities Regulatory Commission and other departments，Listen to opinions。Based on the above work，We have drafted a draft for comments。

(3) Public opinion solicitation stage (2015Year12Month Solstice2016Year6month).

　　2015Year12month7, the Ministry of Finance issued the Accounting Standards for Business Enterprises14No.——Income (Revised) (Draft for Comments)》(hereinafter referred to as“Draft for comments”), publicly solicit opinions from the public. as of2016Year6month30Days, we received a total of feedback63 shares。After the deadline for comments，We have organized and analyzed all feedback，Overall，Most of the feedback basically agrees with the new revenue standard，And believes that the new revenue standard will help to better solve the problem of revenue recognition、Practical issues related to measurement，It has also effectively fulfilled its commitment to the continued convergence of my country’s corporate accounting standards and international financial reporting standards。Meanwhile，The feedback also provided some high-quality modifications，And it is recommended that more detailed guidance and examples be given in the application guide to help enterprises understand and implement the code in practice。Also，There is also feedback that the impact of the revision of the revenue standards on my country’s practice and capital market should be fully considered，It is recommended to implement the new revenue standard in phases。For the valid opinions in the feedback，We will all absorb it。

(4) Testing phase (2016Year3Month Solstice2016Year11month).

After the draft for comments is released，To understand its impact on practice，We are at2016Year3Month selected3State-owned enterprises and4listed companies carry out testing of new revenue standards，Including companies listed in both Hong Kong and the United States、Companies listed in both the Mainland and Hong Kong and companies listed in the Mainland，Involving telecommunications、Real Estate、Energy and Chemical Industry、Transportation、Manufacturing and other industries。Each testing company is working on it2015After careful testing of annual transactions in accordance with the new revenue standards，Written test results provided，On this basis，While we are constantly revising the draft for comments，New revenue standard test report formed。

(5) Modification and improvement stage (2016Year11Month Solstice2017Year7month).

Some key and difficult issues raised by feedback，Combined with test situation，Based on in-depth research，Listen to the opinions m88 online sports bettingof experts in theory and practice many times，Consult relevant personnel of the International Accounting Standards Board on relevant difficult issues。At the same time，We have selected some industries that may be greatly affected，For common transactions and business types in my country’s practice，Collect related cases。On this basis，We proactively communicate with major regulatory authorities，Reach consensus on the timetable and transition regulations for the implementation of the new revenue standard，And comprehensively and systematically revised and improved the new revenue standards。After completing the internal review procedures of the Ministry of Finance，Formation of the final draft of the guidelines，Merge in2017Year7month5.

　　Q: What are the main contents of this revision of the new revenue standards?

Answer: The main contents of this revision are as follows:

(1) Incorporate the current revenue and construction contract standards into a unified revenue recognition model。

The boundary between the current revenue standards and the construction contract standards is not clear enough in some cases，May result in different revenue recognition methods for similar transactions，This will have a significant impact on the company's financial status and operating results。The new revenue standard requires the adoption of a unified revenue recognition model to standardize revenue generated from all contracts with customers，And just“Within a certain period of time”Still“At some point in time”Provides specific guidance on revenue recognition，Helps to better solve the problem of current revenue recognition timing，Improving the comparability of accounting information。

(2) Using the transfer of control rights instead of the transfer of risk rewards as the criterion for determining the timing of revenue recognition。

Current income standards require a distinction between income from selling goods and income from providing labor services，And emphasize that revenue from the sale of goods is recognized when the main risks and rewards of ownership of the goods are transferred to the buyer，Sometimes it is difficult to judge in practice。New income standards break the boundaries between goods and services，Require the enterprise to fulfill its performance obligations in the contract，Income is recognized when the customer obtains control of the relevant goods (or services)，So that it can reflect the enterprise's revenue recognition process more scientifically and reasonably。

(3) Provide clearer guidance on the accounting treatment of contracts containing multiple transaction arrangements。

Current revenue standards provide only very limited guidance for contracts containing multiple transaction arrangements，Specifically reflected in Article 15 of the Revenue Standards and the Accounting Treatment Provisions on Bonus Points in the Explanation of Business Accounting Standards。These regulations are far from meeting current practical needs。The new revenue standard provides clearer guidance on the accounting treatment of contracts containing multiple transaction arrangements，Require enterprises to evaluate the contract on the contract start date，Identify each individual performance obligation contained in the contract，Allocate the transaction price to each individual performance obligation according to the relative proportion of the stand-alone selling price of the goods (or services) promised by each individual performance obligation，Then corresponding revenue is recognized when each individual performance obligation is fulfilled，Helps solve the revenue recognition problem of such contracts。

(4) Clear provisions are given on the recognition and measurement of income for certain specific transactions (or events)。

The new revenue standards provide clear provisions on the recognition and measurement of revenue for certain specific transactions (or events)。For example，Distinguish between gross and net revenue recognition、Sales with warranty terms、Sales with additional purchase options for customers、Grant intellectual property license to customer、After-sales buyback、Non-refundable initial fee, etc.，These regulations will help better guide practical operations，Thus improving the comparability of accounting information。

　　Q: What are the main significance of the revision and improvement of the new revenue standards?

Answer: My country2006It has been more than ten years since the revenue standards and construction contract standards were released in 2016，The Ministry of Finance has comprehensively revised the revenue-related standards for the first time。The significance of this revision is reflected in:

First, it helps enterprises m88 slot machine casinoenhance contract awareness、Standardize contract management。The new revenue standard recognizes revenue based on contracts with customers。Under market economy conditions，Transactions between market entities are mainly based on contracts，The contract stipulates the rights and obligations of the parties to the transaction，And these rights and obligations are protected by law。Consistent with most market economy countries，The new revenue standard recognizes revenue based on contracts，Helps strengthen corporate contract awareness、Standardize contract management，will effectively promote my country’s market economy to further mature。

Second, it helps to improve the quality and transparency of corporate income information，And improve the comparability of revenue information between enterprises。The new revenue standards require the use of a unified revenue recognition model to recognize revenue，Replace the transfer of risk and reward with the transfer of control rights as the standard for revenue recognition，Confirmation of income、Specific guidance is given on measurement and many specific transactions and matters，And require companies to fully disclose income-related information，will help guide practical operations，Meet the actual needs of enterprise income accounting，Provide more reliability、Comparable、Transparent income information，So as to better serve the enterprise、Investor、Provide financial statement users such as regulatory agencies with a basis for economic decision-making。

Third, it helps to promote the organic integration of corporate business management and accounting management，Comprehensively improve the management level of the enterprise。With IFRS15Same number，The new revenue standard highlights that the way an enterprise recognizes revenue should reflect its mode of transferring goods or services to customers，The confirmed amount should reflect the amount that the enterprise expects to be entitled to for delivering the goods or services。In the process of recognizing revenue, companies need to make a lot of judgments and estimates based on historical data，The agreement on the contract terms directly affects the results of revenue recognition，Much of the information required for accounting will also rely on relevant information provided by the business department。Therefore，After the implementation of the new revenue standards，To ensure the quality of corporate income information，It will inevitably prompt enterprises to better collect and organize relevant business information，Also requires close cooperation between the business department and the financial department，Business model of related transactions、Payment Terms、Full communication on pricing arrangements, etc.，This will effectively promote the organic integration of corporate internal management and accounting work，Comprehensively improve the management level of the enterprise。

　Question: How are the implementation time and transition regulations of the new revenue standard arranged?

Answer: International Financial Reporting Standards15No. will be2018Year1month1Effective from today，And allow the subject to adopt it in advance。Therefore，All domestic companies listed in Hong Kong or issuing equity securities or bonds in overseas markets that adopt IFRS，All must do it themselves2018Year1month1Considering our countryAListed company、The situations and requirements of unlisted companies are different，We have listened extensively to the opinions of all parties，And communicate with relevant ministries and commissions，Basing on the market environment of our country and the actual situation of enterprises，On the basis of international convergence，Adopted a step-by-step implementation strategy，The details are as follows:

Firstly，For companies that are listed at home and abroad at the same time and companies that are listed overseas and prepare financial reports using International Financial Reporting Standards or Accounting Standards for Business Enterprises，Since2018Year1month1New income standards will be implemented from today，This requirement is consistent with IFRS15The effective date remains the same，To avoid differences in domestic and foreign statements of this type of listed companies。

The second is，For other domestically listed companies，Request from2020Year1month1New income standards will be implemented from today，Allow two years for these companies to prepare，To summarize and learn from the experience of overseas listed companies in implementing the new revenue standards，Ensure that all listed m88 online sports bettingcompanies implement the new standards with high quality。

The third is，For unlisted companies that implement accounting standards for enterprises，Request from2021Year1month1New income standards will be implemented from today，Allow nearly three years of preparation time for these enterprises，To ensure the smooth and effective implementation of the Code in this type of enterprises。

The fourth is，If the conditions are met、Enterprises that are willing and able to implement the new revenue standards in advance，Allow them to implement this code in advance。

In terms of bridging requirements, IFRS15There are two methods for enterprises to choose: one is to allow enterprises to make retrospective adjustments，Second, the cumulative impact of the initial implementation will only be adjusted to the amount of retained earnings and other related items in the financial statements at the beginning of the year when the standards are first implemented，without adjusting comparable period information。After soliciting opinions from major regulatory authorities and some enterprises，The new revenue standard adopts the second method，Achieve comparable financial statement information between Chinese enterprises，To avoid the burden and impact of retroactive adjustments on enterprises。

　　Q: How should financial departments at all levels guide and supervise the implementation of the new revenue standards?

Answer: Financial departments at all levels should regard the implementation of the new revenue standards as an important part of their recent financial accounting management work，Attach great importance to it、Careful planning、Careful organization，Earnestly do the following:

First, we must strengthen publicity and training。Financial departments at all levels should use multiple channels and forms，Make full use of various network platforms，Do a good job in publicity and training on the new income standards，Help and guidance on the implementation of enterprises and accounting firms to grasp the spirit of the new standards、Core content and major changes，Ensure the smooth implementation of the new standards。

The second is to strengthen implementation guidance。The Ministry of Finance will issue guidance on the application of the new revenue standards as soon as possible，Provide operational guidance for enterprises to implement the new revenue standard，Ensuring the quality of code implementation。Financial departments at all levels must closely track the implementation of the new standards，Guide enterprises to do a good job in implementation，Understand the problems encountered during implementation，Report relevant issues to the Ministry of Finance in a timely manner。

The third is to strengthen joint supervision。Financial departments at all levels should actively strengthen contact and communication with relevant regulatory authorities，Coordinate the new income standards with relevant regulatory policies，Collaborative supervision，Form a combined force，Ensure the effective implementation of the new revenue standard。