Research On The Application Of New Income Standards In Online Game Enterprises

In July 2017,the newly modified revenue standards were officially published.This standard is also the first comprehensive revision since the Ministry of Finance issued the revenue standard in 2006.For Chinese companies,the new revenue standards establish a unified revenue recognition model for them.In January 2020,companies listed in China must implement new revenue standards in accordance with regulations.This change will affect all domestic listed companies in terms of revenue accounting calculation,including the Internet companies,and online game companies that are developing rapidly.The principle-oriented nature of the new revenue standard makes online game companies lack detailed implementation methods in practice.In addition to the virtual nature of their products,online game companies will inevitably have certain problems when they apply the new revenue standard for revenue recognition.According to the use of the standard,this article uses case analysis and written analysis,and uses knowledge of accounting expertise as the theoretical basis,to guide online game companies in the practice of using new revenue standards.First,it introduces the background of the online game companies,and introduces the Giant Interactive Group selected in this article to introduce its method of handling its business under the new revenue standard.Through the above analysis,we find out the problems of the Giant company,and analyze the causes of the problems from the three aspects of the confirmation of the fair value of its main business commodities,currencies and special time sales business.Then,in response to this defect,feasible practical suggestions are put forward,the precipitation of virtual props and the response to special contracts.Referring to the conclusion of case,the conclusion is extended to the online game companies.It is recommended that the online game companies standardize the revenue recognition model,make recommendations on the recognition of virtual asset deposits and the recognition of the fair value of promotional items,and pay attention to the information disclosure of online game companies.This article takes Giant Interactive Group as an example to discuss the accounting treatment methods of the online game companies when applying the new standards,and provides reference for the companies to canonical the use of the new standards,and makes some contributions to the development of the online game companies.