Under The Background Of Revising Income Criteria:Research On The Revenue Recognition Of Online Games Enterprises

In recent years,with the rapid popularization of infinite network and 4G network,online games enterprises in China have developed rapidly.China has surpassed the United States,a big traditional online game country,and become the largest online game market in the world.After the rapid development in recent years,China's online games industry has entered a mature and stable period.The transaction of online games economic business takes place in the virtual online games environment.Virtual currency and virtual props can only be used in specific online games.Its fair value is difficult to accurately evaluate,and the operation mode of online games is diversified.As a result,in accounting practice,for the same type of economic business,different online games enterprises adopt different income recognition methods.Under the mode of independent operation,the time points of revenue confirmation for sales of virtual props are inconsistent.Under the joint operation mode,when online games involve online game developers,online game operators and online game channel providers,online games enterprises are likely to misjudge their roles,leading to the misuse of the total and net methods.The new revenue criteria will greatly revise the revenue recognition of intellectual property rights,which will have a greater impact on the revenue recognition under the authorization mode of online games.In addition,in view of the virtual currency that is not used in the account when the player abandons a game,the accountants of online games enterprises have not implemented a unified accounting treatment method.The objective existence of the above-mentioned pragmatic treatment leads to the incomparability of financial information,reduces the quality of financial statements,and even leaves a larger profit manipulation space for online games enterprises.The healthy development of online games industry will be affected.In July 2017,the Ministry of Finance revised and promulgated the Accounting Standards for Enterprises No.14-Income(hereinafter referred to as the New Income Criteria),which requires domestic listed enterprises to be implemented from January 1,2020,and domestic non-listed companies to be implemented from January 1,221.The new revenue standard no longer classifies the sources of income,and adopts a unified revenue recognition model based on "revenue generated by contracts",which is in line with the international accounting income standards.The new revenue standard will help unify the revenue recognition time point of virtual props sales bus:iness of online games enterprises,standardize the selection and application of the total and net methods,further standardize the method of revenue recognition of authorized online games business,and unify the processing methods of online games enterprises for players who have not used virtual currency for a long time,which will improve the reliability and comparability of financial data.This paper chooses Q company as the case study object,based on the analysis of its business model,according to the requirements of the new revenue criterion,puts forward a reasonable income recognition method.It is suggested that relevant departments formulate detailed rules on revenue of online games industry and strengthen supervision over the disclosure of income information of online games enterprises,hoping to provide help for the smooth implementation of the new revenue criterion in the online games industry.