Legal basis: Accounting Standards for Business Enterprises No.65438 +04- Revenue Article 5 If the contract signed by an enterprise and a customer meets the following conditions at the same time, the enterprise shall recognize the revenue when the customer obtains the control right of the relevant goods: (1) Both parties to the contract have recognized the contract and promised to perform their respective obligations; (2) The contract defines the rights and obligations of both parties to the contract related to the transfer of goods or the provision of labor services (hereinafter referred to as "the transfer of goods"); (three) the contract has clear payment terms related to the transfer of goods; (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 due to the transfer of goods to customers is likely to be recovered. Enterprises do not need to re-evaluate contracts that meet the conditions specified in the preceding paragraph on the contract start date, unless there are signs that relevant facts and circumstances have changed significantly. The contract start date usually refers to the effective date of the contract.