The Recognition And Measurement Of The Internet Enterprise Income

With the constant improvement of the network technology, the Internet enterprises is experiencing unprecedented changes. The explosive development of the Internet bubble burst in 2000, Recently, the Internet enterprises is experiencing practical development as well as recovery. On the one hand,the prosperity of the Internet companies has brought new changes to our lives, changing the way of our life. On the other hand, the Internet enterprise and traditional enterprise have different trade patterns, As we all know, a large part of the reason why the Internet economy bubbles arise is that investors impractical fantasy for the future earnings of Internet enterprise, So the specification of recognition and measurement of enterprise income of the Internet enterprises is particularly important,making it reflect the actual situation of the internet enterprise,providing decision-making useful information for investors.Enterprise accounting standards No.14-revenue, which promulgated by the ministry of finance of China in 2006, it is the basic principles of revenue recognition rules in our country, which is beneficial for the unification of the recognition and measurement of different industries revenue. However,with the rise of the Internet enterprise, the new business model have a certain impact on current accounting standards. Mainly shows the difference in the business type, transaction process as well as revenue between Internet enterprise and traditional enterprise, the basic principles of revenue recognition rules can’t completely satisfy the revenue recognition conditions stipulated in the the new business type. Not only does it brings personnel’s Internet enterprise accounting work difficulty to cope with, but also produce serious impact on the quality of accounting information.In May 2014, FASB and IASB jointly issued the new income principles, the principle made a big adjustment on the recognition and measurement of revenue. Under the background of international convergence, in the field of accounting, whether revise once again become a hot issue.However, the existing research results always simply focus on individual items, lacking of systematic summary of theory.Based on the basic theory of accounting recognition and measurement of the revenue as well as system summary and comparison, this paper expounds the concept, classification and characteristics of Internet companies.This paper analyzes the Internet enterprise business model and the difference between traditional enterprise and Internet company,In combination with China’s basic national conditions and the advanced experience in the international market to put forward feasible measures in view of the problems, with the perfection accounting standards and the development in the field of theory and practice, the domestic Internet industry will achieving sustainable development.