Study On Revenue Recognition Of Online Game Companies As A Case Of Giant Network

With the rise and rapid development of the Internet and mobile Internet technologies,the Internet infrastructure has become more and more perfect,and benefiting from the explosive growth of the entire Internet industry,China's online game industry has shown a rapid development trend.The rapid development of online game enterprises has made outstanding contributions to China's economy.On the other hand,because the new economic model of the Internet is different from the transaction mode and income characteristics of traditional enterprises,the accounting treatment of online game companies is the current accounting in China.There are certain impacts on the guidelines,especially in the accounting treatment of revenue recognition and measurement.There are some shortcomings and differences,which weakens the comparability of accounting information.Shanghai Giant Network Technology Co.,Ltd.(hereinafter referred to as ?Giant Network?)is a comprehensive Internet company with a high reputation in China.Its business model is relatively advanced,and the revenue recognition method adopted is relatively common,with certain typicality and representativeness in the industry.The analysis of the giant network as a case has certain reference and guiding significance for the revenue recognition of the online game industry.This article takes the giant network as the object,through reading the relevant literature at home and abroad,and summarizing the key points of the case study by means of inductive summarization,and constructing the framework of this paper.The first chapter is the introduction,introduces the research background and research significance of this paper,states the basis of the selected case,shows the research ideas and research methods of this paper,and builds the basic framework of the article.The second chapter mainly introduces the ?five-step method? income confirmation model mentioned in the newly revised income standard and the distinction between the main responsible person and the agent.It also defines the income,the basis of income recognition and the income confirmation.The relevant guidelines are explained and closely related to the online game enterprise revenue recognition characteristics,which provides a theoretical basis for the subsequent analysis.The third chapter introduces the overview of Giant's network,including the income source,operation mode and revenue recognition and forecasting methods of Giant Network.It analyzes the confirmation of the income under virtual currency,sedimentary income and joint operation mode under the existing standards.The representative problem that exists in the case,based on this,provides key research elements for the case study below.The fourth chapter analyzes the problems existing in the revenue recognition of Giant Network under the new income standard,and finds the problems in the practical operation,analyzes the causes of these problems,and provides countermeasures for the problems of the giant network revenue confirmation.Ideas.The fifth chapter mainly proposes some suggestions for the revenue recognition of Giant Network.From the two aspects of online game enterprise itself and perfect income standard,the application of revenue recognition method and matching principle for virtual props,accounting disclosure time of sedimentary income And the total amount method confirms the income confirmation and proposes an application type.This paper uses the literature research method and the case study method from the perspective of theory and practice.Based on the research literature of domestic and foreign scholars,combined with the case of giant network and the views of scholars,this paper analyzes the main reasons for the difficulty in confirming the income of giant network.It is the difficulty of pricing virtual goods and the accounting problems and guidelines that are constantly brought about by the innovation of the business model of the Internet industry.Following the problem of finding and solving the problem,this paper proposes the following countermeasures in combination with the new income standard to regulate the income confirmation method of online game enterprises by improving the income confirmation method of the giant network: First,the one-time recharged income is confirmed in stages during the performance period.At the same time,the company improves the accuracy of the estimation of the time limit by improving its own data analysis system;secondly,it achieves the proportion of the generalized cost of income through the classification and timely collection of the intellectual property development costs;third,the combination The concept of control confirms the sedimentary income that is easily overlooked by the enterprise.Fourth,the income obtained under the joint operation mode is recognized by the total method by identifying the one-way performance obligation and contract cost.Finally,the new income criterion is proposed.It is recommended to provide better guidance for the Internet industry,integrate with international standards,and improve the quality of accounting practice.