202 1 Accounting Standards Revenue Recognition Principles

202 1 accounting standards revenue recognition is based on the principle of control transfer.

Revenue recognition must meet the following five conditions at the same time:

1. The parties to the contract recognize the contract and promise to perform their respective obligations;

2. This contract defines the rights and obligations of all parties involved in transferring goods or providing services (hereinafter referred to as "transferring goods");

3. There are clear payment terms related to the transferred goods in the contract;

4. The contract has commercial essence, that is, the performance of the contract will change the risk, time distribution or amount of the future cash flow of the enterprise;

5. The consideration that the enterprise has the right to obtain because of the transfer of goods to customers is likely to be recovered.

Accounting standards are the basic principles that accountants must follow in accounting work and the norms of accounting work. It refers to the specific accounting treatment of economic business to guide and standardize the accounting of enterprises and ensure the quality of accounting information. Accounting standards are also a set of documents that regulate accounting and accounting reports. Its purpose is to establish accounting treatment on a fair and reasonable basis, and to make it possible to compare accounting results between different periods and different entities. According to the business nature of their employers, accounting standards can be divided into profit-making organizations and non-profit organizations.

People's Republic of China (PRC) Accounting Law Article 5 Accounting institutions and accountants shall conduct accounting in accordance with the provisions of this Law and exercise accounting supervision.

No unit or individual may in any way incite, instigate or force accounting institutions or accountants to forge or alter accounting vouchers, accounting books and other accounting materials and provide false financial and accounting reports.

No unit or individual may retaliate against accounting personnel who perform their duties according to law and resist acts that violate the provisions of this Law.

Article 8 The State practices a unified accounting system. The financial department of the State Council shall formulate and promulgate a unified national accounting system in accordance with this Law.

The relevant departments of the State Council may, in accordance with this Law and the unified national accounting system, formulate specific measures or supplementary provisions for implementing the unified national accounting system in industries with special requirements for accounting and accounting supervision, and submit them to the financial department of the State Council for examination and approval.

The General Logistics Department of China People's Liberation Army may, in accordance with this Law and the unified national accounting system, formulate specific measures for the army to implement the unified national accounting system and report them to the financial department of the State Council for the record.