Research On Revenue Recognition Of Webcast Platform Based On New Revenue Criteria

In the context of the rapid development of the Internet,as a new force in the Internet industry,the webcast industry has also transited from embryonic stage to robust growth stage,with the increasing number of hosts and users.However,due to the difference from the business model of traditional industries,it is difficult to define whether the webcast industry provides users with commodities or services.Virtual commodities provided to users are also very different from traditional goods,and the particularity and complexity of its transactions pose a great obstacle to the recognition of income.Nowadays,the new revenue standards and the international joint accounting standards have no targeted measurement standards for the webcast industry,or even the Internet industry.How to confirm the revenue under the background of the new revenue and standards is the next challenge facing the webcast industry.Based on the new revenue principles,this paper studies the problem of revenue recognition in the webcasting industry.Firstly,it analyses previous research on income and virtual goods.Secondly,the paper analyzes the webcast industry's business model and the main source of income,and then explore widespread characteristics of revenue recognition in the webcast industry.Thirdly,taking Y webcasting enterprise as an example,it explores Y enterprise's problems existing in the process of revenue recognition for enterprise business model and source of income.These problems mainly include:when users use virtual currency to purchase virtual goods,the money involved in the transaction will be recognized as income,but enterprises need to provide users with a network environment to use virtual goods in the follow-up.Meanwhile,for the virtual currency,virtual goods or bonus points presented to users in promotional activities,no accounting treatment shall be made without distinguishing specific situations.Moreover,for the remaining virtual currencies in inactive user accounts,there is not determined whether the income needs to be recognized according to the specific situation,and accounting treatment is not made.Finally,aiming at above questions and their reasons,this paper is put forward the corresponding suggestion for the webcast industry and the new income principles.For the webcast industry:virtual goods can be divided into disposable,limited and permanent virtual goods according to consumption mode,and it should according to different categories determine whether need to affirm income in stages,and if so,the period of confirmation by stages should be judged.Secondly,for the remaining virtual currencies in inactive user accounts,the income recognition criteria shall be set according to historical data of the enterprise,and long-term unused virtual currencies that meet the requirements shall be recognized as income.Finally,according to the essence of promotional activities,it can be divided into three categories:free promotion,bundling sales and bonus points.Revenue should be recognized according to different categories.For new income criterion:regarding the timing of control right transfer and amount of revenue recognition should specify judgment standard.Then,amount of revenue recognition depends on transaction consideration of the contract,and unfair transaction consideration shall be taken into consideration.Finally,accounting information related to revenue recognition should be disclosed in more detail.As of now,there have been few studies on the income recognition of webcast industry.As the revenue criterion is applicable to all industries,there is no detailed judgment standard for the special problems of webcast industry.This paper aims to provide theoretical guidance for revenue recognition of webcast industry,and can be used for reference by other Internet industries.