Research On Revenue Recognition Of Online Game Companies In The Context Of New Revenue Standard

After 2015,the development of the Internet and mobile terminals has led to the rapid development of online games.In 2019,China's game revenue reached 230.88 billion yuan.Due to the uniqueness of online game companies,their transaction mode is special and complex compared with conventional transactions,which means that the accounting information of online game companies is much more complex than that of general companies.However,the accuracy and authenticity of accounting information of online game companies are directly related to the orderly development of the market,in which the information provided by revenue-related subjects is an important indicator to reflect whether the business is in good condition.According to the?Accounting Supervision Report of Listed Companies?issued by China securities regulatory commission in 2015,the judgment of game companies on the revenue recognition point is inconsistent with the measurement.In addition,China's ministry of finance issued CAS14 in July 2017,and required domestic listed companies to start applying the new revenue guidelines in 2020.The use of the new standards is imperative.The?Accounting Supervision Report of Listed Companies?in 2018 shows that since the promulgation of the new revenue standards,there are certain problems in the application of the new revenue standards by listed companies.Compared with the change of the old one,the new revenue criterion is a fundamental change,and the overall change is large,which will have a certain impact on the revenue recognition of such emerging industries as the game industry.How to combine the company's specific business application of the new standards for the correct revenue recognition is a major problem that a game companies need to solve.This paper mainly adopts the case analysis method and literature reading method,uses the accounting theory and the new revenue criterion as the theoretical basis,and summarizes the current situation of the income recognition of the listed game companies in China.Combining the theory with practice,starting from the income characteristics and industry regulations,and combining with the representative online game company--company J,according to the revenue recognition principle of company J,it analyzes the following problems of the current case company:the model based on items(props)is easy to operate earnings;Revenue recognition is not reasonable in joint operation;No matching of revenue and cost;There is no clear disclosure of the handling of the game currency not consumed by the players who have not been online for a long time and the promotion activities;The existence of game secondary market influences the judgment of life cycle.In view of the above points,based on the requirements of the new standards,and combined with the characteristics of the entire industry,the corresponding effective solutions are proposed.First,choose the model according to the characteristics of the company or the product.;Second,combined with the new guidelines to recognize joint operating income;Third,the generalized matching method is adopted to enhance the matching of revenue cost;Fourth,combined with the life cycle of players to solve the problem of precipitation income;Fifth,improve the ability of system analysis and processing.Thus further improve the quality of accounting information,improve the utilization efficiency of information users,so that the company can according to the actual situation,combined with specific business to efficiently apply the new revenue standards.The existing literature on the study of revenue recognition often neglect the external factors,therefore the article will also taken external factors into account in the study.In the process of using the new guidelines found some guidelines that may affect the accuracy of the income of problem,so the paper also puts forward suggestions for new income standards and relevant regulatory departments to perfect the income standard,improve the standards practical.In order to obtain high quality of accounting information,promote the healthy and continuous development of online game market.