[Case].Company A is a real estate development enterprise in China, engaged in the development and sale of real estate residential projects in China. Company A obtained a piece of land use right through bidding, auction and listing in January 2 23, and developed commercial housing in community A on this land, and began to pre-sell commercial housing in community A after obtaining the pre-sale permit in October of the same year, which is expected to be delivered to the customer after completion in June 2 25. 2 On March 1, 24, Company A signed a contract for the sale and purchase of commercial housing with a customer, pre-selling a commercial house in Community A to the buyer (buyer, the same below), and the payment method was to pay the contract price in full at one time on the date of signing the contract. The main terms of the contract are as follows:
1. The commercial housing pre-sold by Company A to the customer is: Room 303, 3rd Floor, Unit 1, Building 1, Community A;
2. Company A cannot give the commercial housing to other parties other than the buyer agreed in the contract;
3. The commercial house should be delivered to the buyer before July 31, 25, and the buyer does not have the legal ownership of the commercial house during the construction of the commercial house, and cannot use the commercial house under construction for ** or mortgage;
4. The purchaser has the right to terminate the contract under the following circumstances:
1) The absolute value of the error ratio of the floor area of the commercial housing purchased by the buyer exceeds 3%;
2) Company A is overdue for more than 30 days;
3) After the delivery of the house, the quality of the main structure is unqualified.
In addition to the above circumstances, if the buyer unilaterally requests to terminate the contract, he shall pay 20% of the contract price to Company A as liquidated damages.
Question: How should the revenue of the pre-sale payment obtained by the real estate development enterprise at one time be recognized?
[Analysis].In this example, Company A's performance obligation is to sell the commercial housing built to the designated buyer
1. Company A is responsible for the construction of the commercial housing, and the buyer has not obtained the legal ownership of the relevant commercial housing during the construction of the commercial housing, and the buyer cannot obtain and consume the economic benefits brought by the construction of the commercial housing by Company A at the same time as the construction of the commercial housing by Company A.
2. Company A builds a commercial house on the land on which it has the right to use the land, and the buyer has not obtained the legal ownership of the relevant commercial house during the construction of the commercial house, and cannot use the commercial house under construction for ** or mortgage, nor does it have the right to lead the construction of the house, change the design or use of the house, indicating that the buyer cannot dominate the use of the commercial house and obtain almost all the economic benefits from it, therefore, the buyer cannot control the relevant commercial house under construction in the performance process of Company A.
3. The contract stipulates that the commercial housing sold by Company A to the buyer is the only housing unit with the house number of the designated building, and Company A cannot replace the housing unit pre-sold to the buyer, nor can it sign the sales contract of the designated commercial house with other parties other than the buyer, and Company A will build the house in accordance with the contract and deliver it to the buyer on time, so the designated commercial house has an irreplaceable use. However, if the buyer unilaterally requests to terminate the contract, it only needs to pay 20% of the contract price to Company A as liquidated damages, indicating that Company A cannot collect the amount that can compensate it for the costs and reasonable profits incurred for the part of the performance that has been accumulated so far at any point during the entire contract period.
Based on the above circumstances, Company A's pre-sale business of commercial housing does not meet the conditions for performing the performance obligation within a certain period of time, and is a performance obligation to be performed at a certain point in time, and Company A shall recognize the revenue when the buyer obtains the control of the designated commercial housing (usually when the commercial housing is delivered), and does not need to recognize the revenue when receiving the pre-sale money. 