Research On Revenue Recognition Of Kingnet's Game Business

In recent years,with the rise of Internet economy,China's online game enterprises have been rapid development,become an important part of the Internet economy.However,due to the particularity of the online game industry and the novelty of the game business,there are many problems in the revenue recognition principle of the online game business in China at present.In 2017,the Ministry of Finance of our country promulgated the revised new revenue guidelines(hereinafter referred to as "the new guidelines "),established a unified revenue recognition model,but did not target specific industries and specific business recognition standards,so how to improve the revenue recognition principle of online game enterprises with the new guidelines is an important problem facing online game enterprises at present.This paper chooses "Kingnet" as a case study enterprise,uses case analysis method to analyze the existing problems and causes in the current game revenue recognition of Kingnet,and explains the influence on the revenue recognition principle of Kingnet's online game from both qualitative and quantitative aspects,so as to put forward some concrete countermeasures for Kingnet to improve its game revenue recognition principle,and then puts forward some suggestions in order to provide reference for the same type of enterprise and help it to apply the new criterion better.First of all,starting from the current situation of revenue recognition of "Kingnet ",this paper analyzes the existing problems and reasons in the revenue recognition of Kingnet's online game by comparing with the principles of revenue recognition of online game enterprises at home and abroad,and combining with the new guideline.At present,there are some problems in revenue recognition of Kingnet,such as the time point of virtual props income recognition,the recognition of virtual currency precipitation income,the distinction between total amount method and net method,the determination of fair value of promotional products and the integrity of relevant accounting disclosure,which need to be solved urgently.Then,on the basis of the existing research,it is of practical significance to furtherexplore the impact of the implementation of the new guidelines on the revenue recognition principle of Kingnet's online game business from both qualitative and quantitative aspects.The new revenue criterion will have an impact on the revenue recognition of online game enterprises in the aspects of game virtual props income recognition time point,game license income recognition time point,the identification of main responsible persons and agents,variable consideration and channel cost.Finally,according to the provisions of the new standards and drawing lessons from the revenue recognition principles of some foreign listed online game enterprises,this paper puts forward some suggestions for solving the problems existing in the game revenue recognition principle of Kingnet,and provides reference principles for relevant online game enterprises.