The Study On Accounting Problems Of Digital Products

With the rapid development of information technology and e-commerce, the digital economy has been coming. Accounting recognition and measurement of digital products have become a problem as there’s nothing about digital products on existing accounting standards and law. Different companies have different accounting methods to account digital products and scholars each has a different view on the problems about digital products,.Current research on digital products accounting issues is rarely and it’s a important issue of how to account and measure digital products correctly for enterprises. In the thesis, author puts forward the view about definition, classification,accounting recognition and measurement, financial reporting of digital products on the basis of the existing digital products research, combined with analysis on domestic and international accounting standards and relevant laws and regulations and typical cases on digital products. This research plays a positive role on the existing research of digital products by combing and improving it.There are six parts in this thesis. The first part of the article introduced the research background and theoretical and practical significance, and also stated the research ideas of author, articles frameworks, research methods and theoretical contribution, pointing out that it has great theoretical and practical significance to research how to account and measure digital products in the era of digital economy. The second part of the article is the review and evaluation of the relevant literatures from the aspects about definition and classification, accounting problems, pricing strategy and relevant laws of digital product. The third part is an overview of digital products from the aspects of the current situation, concepts, characteristics and classification of the digital products. This part makes a clear distinction between digital products and digitalized products and sums up the characteristics of digital products, such as non-physical form, the virtualization of production process, non-exclusive and so on. Digital products have been divided into four categories, namely tools and utilities, content-based digital products, online services, symbols and concepts.The fourth part solve the problem of accounting recognition, measurement of digital products. Author firstly points out the difference between digital products and intangible assets and inventory,then discusses how to recognise and measure digital products and revenues in different circumstances.Author advances digital products held for the purpose of sales should be recognized as digital assets and the revenue should be be recognized as payment is received in general,and in special circumstances revenue should be deferred to recognize until the final goods are delivered. The fifth part is the systematic summary of accounting for digital products and author’s opinion on the disclosure of accounting information about digital products. The balance sheet should be redesigned in the era of digital economy and digital assets should be listed in the balance sheet separately as it’s different from inventories and intangible assets. The sixth part is the summary of the full text and conclusions and recommendations of this thesis are listed at the last.