Research On Revenue Recognition Of Online Game Companies Under The New Revenue Standards

In July 2017,"Accounting Standards for Business Enterprises No.14-Revenue" was formally issued by the Ministry of Finance of China,which regulates the revenue recognition model of all enterprises including online game companies in China.Based on the vigorous development and continuous improvement of Internet configuration elements in China's economic market,the online game industry is showing a violent development trend.Because there is no lesson to learn,the online transaction model of online games,and the new revenue standard is still a framework to regulate the recognition of corporate revenue models and lack of confirmation clauses corresponding to the subdivision of businesses in various industries,making online game companies in the application of the new standards Certain difficulties.Therefore,it remains to be explored how online game companies should reasonably confirm revenue under the new standard.Based on the perspective of the new revenue standard and the characteristics of the revenue recognition of online game companies,this paper analyzes the difficulties in the revenue recognition of online game companies under the new standard based on the case of T Enterprise and proposes improvements based on this.This article covers six parts.The first part is an presentation,elaborating the research backdrop and worth of this article,giving a basic summary and introduction of why this case is selected for analysis and research,combing relevant literature at home and abroad,and establishing a basic framework for the article,laying the main tone.The second part first introduces the definition of income and the basis of recognition,then analyzes the impact of the implementation of the new income standard on online game companies,and introduces the "five-step method" income recognition model.Based on this analysis,the analysis of revenue recognition of online game companies has the characteristics of uncertainty at the time of confirmation,difficulty in confirming the price of virtual commodity transactions,and diversification of income confirmation methods.Based on this,it provides emphasis essential factor for the case studies below.The third part introduces the background of the T enterprise case,explains its current revenue recognition status,operating profit and revenue recognition method,and provides background information for the following analysis.The fourth part is the analysis of the difficulties and reasons for the revenue recognition of T companies under the new revenue standard.According to its profit model and operation method,based on the analysis of the new standard,it is found that T companies have the following difficulties in the revenue recognition process:the timing of revenue recognition of virtual goods is difficult to define,the timing of revenue recognition is difficult to determine,it is difficult to judge virtual props and virtual The separate selling price of currency and the difficulty of clearly distinguishing between the gross method and the net method,and an analysis of the reasons for this,provide ideas for countermeasures for the problems in the confirmation of T enterprise income.The fifth part is based on the previous article to explore the existing problems of T enterprise income confirmation and make targeted suggestions,and expand from T enterprise to find common countermeasures to the common problems in China's online game industry.Starting from two directions,on the one hand,within the enterprise,and on the other hand,the income criterion,it proposes the feasibility of how to accurately confirm the time of income,how to define the income of the virtual product,the total method and the net method,and the disclosure of information during promotional activities.Sexual advice.Finally,the summary of the previous research and the prospect of the future.This article uses the case analysis and literature research method to study the problem of revenue recognition of China's online game companies under the new standard.The innovation point is mainly in the novel topic selection angle and the development of the times.The specific performance is that the online game industry as an emerging industry has a more complicated transaction process,and the new income standard does not have a specific business operation guide,and there is not much theoretical research on the online game industry at home and abroad,and no systematic and perfect research results have been formed.At the same time,according to the requirements of the new standards,domestic listed and unlisted companies will implement the new standards in 2020 and 2021.For the two to three years of delayed implementation of the Ministry of Finance for domestic enterprises,there is a The case of related companies is particularly important,especially T company as a leading typical online game company in the industry.Therefore,the research in this article has certain reference significance for the specific implementation of the new income standard for Chinese companies,which is beneficial to China 's online games.The healthy development of the industry.