A Study On Revenue Recognition And Measurement Of Giant Network Under The New Revenue Standards

The online game industry is developing rapidly with the development of digital economy.Its profit model is different from other traditional industrial and commercial industries.If these companies continue to use the previous revenue standards for revenue recognition and measurement,there will be many problems.In view of this,the government issued the accounting standards for Business Enterprises No.14-revenue in 2017.The formulation of the new revenue standards has solved some of the difficulties in the revenue recognition and measurement of online game enterprises.But it has not formed a standard for the revenue recognition and measurement of the game industry.Therefore,the judgment on the time point of revenue recognition and the measurement of amount of online game enterprises are inconsistent,and the disclosure of revenue recognition is not standardized.The study in this thesis embodies the literature study method and the case analysis method.It combs the relevant provisions of revenue recognition and measurement under the new revenue standard,and then analyzes the current situation of giant network revenue recognition and measurement under the new revenue standard in detail.By combing the current situation,this thesis finds out the problems existing in the revenue recognition and measurement of giant network revenue under the new revenue standard.This thesis calculates the sales of card points that have not been converted into virtual currency collected by giant network,and finds that its proportion in the pre-sale funds increases year by year,but the accuracy of the data can not be guaranteed.At the same time,this thesis also calculates and compares different revenue recognition methods under the new revenue standards of giant network from 2017 to 2019.It founds that using the total amount method and the net amount method will cause a large difference in the gross profit,operating cost and operating revenue of the enterprise.This thesis also compares the operating revenue of giant network at a certain time point and a certain period,and finds that two different revenue measurement methods will lead to a large gap in the amount of revenue and cost.Finally,this thesis analyzes the causes of the above problems,and puts forward some suggestions to improve the revenue recognition and measurement of giant online game enterprises under the new revenue standard.The giant online game enterprises selected in this thesis are representative.By studying the problems existing in giant’s network revenue recognition and measurement under the new revenue standard,this thesis provides a theoretical reference and practical basis for online game enterprises to smoothly implement the new revenue standard.This research is beneficial to the revenue recognition and measurement of online game industry.