Conditions for income recognition of real estate enterprises

1. The main risks and rewards of goods or services have been transferred, which is the first condition for recognizing income. Only when the main risks and rewards of commodity ownership have been transferred to the buyer can the seller confirm the income. In the real estate industry, this situation generally occurs when the house is delivered or the property certificate is issued.

2. Signing a contract, the real estate company signs a purchase contract with the buyers, and clarifies the rights and obligations of both parties, which is the basis for confirming income.

3. Collection: It is an important condition for the real estate company to receive the house payment from the buyers, including the down payment and mortgage payment.

4. House delivery: the real estate company delivers the house to the buyer, and the buyer obtains the ownership and use right of the house, which is the key link to confirm the income.

5. The settlement is completed. The real estate company and the buyers complete the settlement of the purchase price, including the purchase price, taxes and fees, property fees, etc. This is the last step in revenue recognition.