Study On The Revenue Recognition Of Online Game Internet Enterprise

With the continuous improvement of the quality of material life,people are constantly seeking the enjoyment of spiritual entertainment.In the 21 st century,with the rapid development of Mobile Internet,the scale of the online game industry is constantly expanding.Online games,as an interactive entertainment based on the Internet,have become one of the main forms of leisure and entertainment for people.At the same time,as one of the most important accounting elements,revenue is an important indicator to measure the operating results of the enterprises.Therefore,studying the issue of revenue recognition is of great significance for online game enterprises to standardize their revenue recognition standard in practice,and enhance the reliability,relevance and comparability of the revenue-related information,which is beneficial to the information users to make scientific decisions.This paper uses case studies and normative research methods.On the one hand,by analyzing the operating models and revenue recognition status of S enterprise,it is found that under the current Revenue Standard,there are generally have some problems of revenue recognition in online game enterprises such as the type of revenue is not clear,the time point of revenue recognition and the method of revenue recognition are difficult to judge in practice.On the other hand,on July 5,2017,China's Ministry of Finance revised and issued the Enterprise Accounting Standards No.14 — Revenue(hereinafter referred to as the new Revenue Standard),the relevant provisions of revenue recognition in the new Revenue Standard are more consistent with the economic essence of the game operation business of online game enterprises.Therefore,this paper proposes some suggestions based on the new Revenue Standard and combined the characteristics of the game operation business of the online game enterprises for improving the problems existing in the revenue recognition of S enterprise,so as to solve the difficulties in the practice of revenue recognition.The main points of this paper: First,the sale virtual props of the online game enterprises should not recognize the revenue in accordance with the “selling goods” under the current Revenue Standard,but it still cannot provide information with reliability,comparability and relevance in accordance with the “providing labor services” to recognize the revenue.Online game enterprises adopt the revenue recognition standard in the new Revenue Standard,which is more consistent with the economic essence of the game operations business of the enterprises.Second,for the revenue obtained by selling virtual props to players,online game enterprises should distinguish the type of the virtual prop,the revenue of one-time virtual props is recognized when it is used.For the limited use of the virtual props and the permanent type of virtual props,the revenue should be recognized in stages according to the fulfillment of the performance obligation during the lifetime of the virtual props and the life of the game players.Third,in the joint operation model,if the online game enterprises undertake the main responsibility of setting up game servers,leasing broadband,and providing game consulting services for players,the revenue should be recognized using the total amount method.Fourth,when the online game enterprises carry out the promotion activities,the enterprises should identify and separate the multiple performance obligations stipulated in the promotion contract,and apportion the considering received,then,the appropriate accounting treatment is carried out separately.Fifth,unless the game-related services are terminated,online game enterprises should recognize the revenue of this portion when the enterprises can reasonably estimate the probability of virtual currency being used is very small.