Research On Revenue Recognition And Measurement Of Online Game Companies Based On New Revenue Standards

In order to better adapt to the needs of market economy development and better standardize the accounting treatment of income,China officially issued the CAS14(2017)in July 2017,namely the new revenue standards,and it was implemented in domestic listed enterprises on January 1,2020.Along with the rapid development of Internet economy and digital technology,the online game industry has made remarkable achievements.The sales revenue of the game market and the scale of the game user have both improved greatly.At present,our country has grown into the world’s largest game market,and the net game industry has become a pillar industry of Internet economy.Due to the particularity of game products,online game companies still face some problems in the process of implementing the new revenue standards.Therefore,this paper mainly studies the impact of the new revenue standards on the revenue recognition and measurement of online game companies.Starting from the differences between the old and new revenue standards,this paper has an in-depth understanding of the methods of revenue recognition under the new standards.By using literature research method,comparative analysis method and case analysis method,combined with the characteristics of online game industry revenue recognition,this paper makes a detailed analysis of Perfect World Games and finds that there are the following problems under the new standards:(1)The selection of total amount method and net method is subjective;(2)Player lifecycle is difficult to predict accurately;(3)The existence of precipitated income may increase the income falsely.(4)Partial business disclosure is incomplete.In view of the above problems,the following conclusions are drawn:(1)Define the different identities of enterprises under different operation modes,and consider the use of total amount method and net amount method in combination with the actual situation of enterprises;(2)Solve the problem of precipitated income combined with the player’s life cycle,and share the precipitated income within the player’s life cycle;(3)Strengthen data analysis ability,upgrade data analysis system,introduce and train professional talents;(4)Improve the disclosure of relevant information.These problems are common in other online game companies as well,and the suggestions on Perfect World Games can also provide some reference value for the entire game industry.