Research On The Impact Of The New Revenue Standards On The Revenue Recognition And Measurement Of Online Game Companies

Revenue is an important part of the accounting system.The recognition and measurement methods of revenue are also an enduring topic in the theory and practice fields of accounting.Under the background of the increasing convergence of China's accounting standards and international accounting standards,the Ministry of Finance in China formulated new revenue guideline in 2017,which established unified model of revenue and revised some regulations that are unsuitable for special industries and business.These changes have brought great impacts on different industries,including online game industry which developed rapidly in recent years.Due to the particularity and complexity of online game business,the old revenue guidelines can't give a better explanation and guidance to it,so there have been contradictory problems in the recognition and measurement of revenues.How to adapt to the trend and standardize the accounting treatment are serious problems for online game companies that needs to be solved urgently.This article takes 41 online game companies which listed in the A-share market as a sample,and analyzes the methods of revenue recognition and measurement under the old revenue guidelines,and finds the following four problems:(1)There are multiple revenue recognition points of time;(2)The income measurement methods of the same business model are not uniform;(3)The income processing of promotional activities is not standardized;(4)The recognition of precipitation income is ignored.The existence of these problems makes the income information of online game enterprises are lack of comparability,and increases the space of financial fraud.This paper expound the new income standard to improve the income accounting of online game enterprises by introducing the relevant concepts of the new income standard from the following perspectives: the point of time of revenue recognition,determination of main responsible person,allocation of transaction price,rights not exercised by customers.At the same time,this paper takes Kingnet as a case and adopts a case study method to do further research on the application of the new revenue guidelines in online game enterprises.Based on the analysis of the specific business and income of the case company at present,this paper puts forward reasonable method of revenue recognition measurement which can solve the above problems.In view of the above research,this paper believes that the implementation of the new revenue guideline solves the problem of multiple income points in online game companies,and regulates the accounting treatment of promotional activities and precipitated income in online game companies,and also helps online game companies to more reasonably judge the main responsible person and Agents.Furthermore,it improves the current situation of the poor comparability of accounting information among online game enterprises and reduces the space of financial fraud and earnings management...