Research On Revenue Recognition Of Online Game Enterprises Under The New Standard

With the development of software and hardware technologies and the rising market demand,online games have become an important part of the current Internet economy.However,because the business characteristics of online games are different from traditional industries,the normative issues of online travel enterprise income accounting standards are more prominent.In May 2017,the Ministry of Finance revised the income accounting standards to achieve convergence with international income standards,and plans to implement them in January 2020 for companies listed separately in China.The new income standard emphasizes the combination of income accounting treatment and the actual business characteristics of the enterprise.However,whether the specific relevant clauses are conducive to solving the problem of revenue recognition of online game enterprises under the current standards is worthy of further study by the academic community.This paper mainly uses literature research method and case analysis method.Firstly,the basic theory of income recognition was reviewed through literature review,and the changes in income standards before and after revision were summarized.At the same time,the income formation and income recognition of online games industry were studied and summarized,which provided the basis for the case analysis.Secondly,this paper takes Giant Interactive Group as a research case,and sorts out the revenue recognition methods disclosed in its annual report,and analyzes the problems existing in the current revenue recognition method based on the actual operating characteristics of the online game business and the relevant provisions of the new income standard.And to propose a corresponding solution.Through the analysis of this paper,we find that:(1)The permanent props in the virtual props need to be based on a reasonable estimate of the expiration period of the props,and there is a certain surplus management space.(2)The precipitation virtual props can confirm the income if it meets the new standard “no longer has the remaining obligation to transfer the goods to the customer”,which is inconsistent with the actual situation of the settlement income.(3)In the daily business activities of online game enterprises,the conversion ratio of virtual currency and real money often changes.How to calculate the ratio of the two is a key issue to improve the revenue recognition of online game enterprises.In view of the above problems,this paper proposes specific solutions based on micro perspectives.On the other hand,based on the macro perspective,it proposes suggestions for improving the revenue recognition of online games industry from the perspective of enterprises,industries and regulatory authorities.To improve the revenue recognition of online game companies can not only focus on the revision of the guidelines,but also need to cooperate in many aspects.This paper also hopes to study this and play a positive role in solving practical problems for online game enterprises.