Factors Influencing the Selection of Accounting Policies Regarding Revenue Recognition of Real Estate for Non - Publicly Accountable Entities

Abstract

                This paper aims to study factors influencing the selection of accounting policies regarding revenue recognition of real estate for non-publicly accountable entities. The main informant of this study is personnel in the real estate businesses in Phra Nakhon Sri Ayutthaya Province. This study is a qualitative research. Data were collect by in-depth interviews with 18 executives and accounting managers. The theme analysis approach was use as a tool to analyze the main issues by specificity regarding the expected factor influencing the accounting policy selection. In addition, the triangulation method is used in data collection methods. By using different sources to collect data from 1) real estate (NPAEs) 2) interview providers and 3) financial statements
                The results of this study revealed that (1) internal factors affecting the selection of accounting policies regarding revenue recognition of real estate for non-publicly accountable entities included the attitude of the executives towards tax planning and targeted business performance. (2) external factors affecting the selection of accounting policies regarding revenue recognition of the real estate for non-publicly accountable entities consisting of economy, politics, society, competitors, laws and regulations. (3) revenue recognition of installment amount on due, revenue recognition methods by percentage of job completion directly affecting a difference between production cost and profit. These factors significantly influenced financial information, and were involved in the decision to select the accounting policies. 
                Choosing an appropriate accounting policy contributes to the accuracy of financial analysis of the real estate for non-publicly accountable entities. Therefore, management should select an appropriate revenue recognition method and apply them consistently. In addition, the government agencies should develop or promote an appropriate tax-planning notion for non-publicly accountable entities for maximizing the organization’s benefits.

Article history : Received 2 May 2019
                              Revised 31 May 2019
                              Accepted 5 June 2019
                              SIMILARITY INDEX = 0.00