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

Revenue can reflect the operating status and management level of an enterprise at a certain point in time,and the accuracy of revenue recognition is subject to various factors.Online game enterprises are different from traditional enterprises.Their business is more complex,and most of their products are sold without physical assets.Enterprises mostly rely on professional judgment in the process of relevant revenue recognition.Therefore,different online game enterprises adopt different revenue recognition methods,which may lead to non-uniformity of revenue measurement results and increase the risk of financial fraud.Therefore,under the original revenue standards,the relevant revenue recognition provisions for online game enterprises are not standardized and unified enough.In order to be in line with the international revenue standards,the Ministry of Finance revised the revenue accounting standards in may2017,and for domestic enterprises that are individually listed.The new revenue standards mainly put forward specific principles for the process of revenue recognition and further standardized the process and system of revenue recognition.Taking y online game company as the research object,this paper analyzes the current situation of Y online game company’s revenue recognition under the original revenue standards by analyzing the information disclosed in Y online game company’s annual report.It is found that the old revenue standards of Y online game company do not specify different operation modes and revenue recognition methods,the standards for determining the revenue of virtual props are different,the precipitation revenue is easy to be ignored in the process of revenue recognition,and the revenue of promotional activities is not easy to be determined.Based on this,it analyzes the specific reasons for the relevant problems existing in the original revenue recognition and measurement process of Y online game company.Next,this paper analyzes the revenue recognition practices of Y online game company under the new revenue standards,and compares the revenue recognition results of Y online game company under the old standards.It is concluded that the introduction of the new revenue standards makes the revenue recognition standards of Y online game company more clear,and can further standardize various revenue recognition processes of online game companies,improve the comparability of industry revenue,and inhibit earnings management.According to the above research,this paper believes that the introduction of the new revenue standard has certain standardization for the revenue recognition and measurement of online game enterprises on a certain level,defines the choice of the total amount method or the net amount method for online game enterprises,and also standardizes the standards for the recognition of virtual property revenue and precipitation revenue,so as to unify the relevant revenue recognition processes and help to reduce the space for financial fraud and earnings management,Improve the comparability of relevant revenue recognition of online game enterprises.The specific guidance of income standards provides guidance for special businesses in online game enterprises,further unifies accounting treatment methods,and improves the accuracy of financial information.This paper hopes to study the impact of the recognition after the implementation of the new revenue standards to provide reference for the subsequent improvement of the standards,and also play a role in promoting the orderly,steady and sustainable development of the online game industry.