The revenue recognition time of real estate companies is generally based on the settlement and delivery of commercial housing to customers. If the house is not completed, you can confirm the income, carry forward the profit, and calculate the cost according to the contract after confirming the income.
Real estate is a capital-intensive industry with large investment. In order to raise funds, real estate sales often take the form of pre-sale, that is, charging customers the price when the goods have not been built. In this way, the time difference between delivery and receipt is very large.
Generally speaking, a large number of houses will be delivered at the time of delivery, but they are sold in sets at the time of sale. The result is that there is no income for a long time, and once there is income, it is a big profit.
Extended data:
Operating income includes main business income and other business income. Main business income refers to the income generated by the regular and main business of an enterprise. Such as the sales of products and semi-finished products and the income from providing industrial services;
Income from commodity sales by commodity circulation enterprises; Ticket income, tourist income, catering income of tourism service industry, etc. The main business income accounts for a large proportion of enterprise income, which has a decisive impact on the economic benefits of enterprises.
Other business income refers to other business income other than the above-mentioned main business income. Including material sales, outsourcing goods sales, waste materials sales, waste products sales, income from providing labor services, real estate development income, consulting income, guarantee income and other business income. Other business income accounts for a small proportion of enterprise income.
Baidu encyclopedia-operating income