Research On The Impact Of New Revenue Standard On The Revenue Recognition Of Internet Enterprises

In 2006,the Ministry of Finance promulgated the accounting standards for Business Enterprises No.14-Revenue(hereinafter referred to as the "original revenue standards")and the accounting standards for Business Enterprises No.15-Construction Contract,regulating revenue recognition,measurement and disclosure of relevant information.With the continuous development of social economy,the transaction activities of enterprises become more and more complex,which is difficult to meet the requirements of the current business environment.On the one hand,the original revenue standard divides revenue types into sales of goods,provision of labor services,transfer of asset use rights,and separately regulates the revenue of construction contracts.Different income types have different income recognition standards,and the standards for revenue measurement are not clear enough.On the other hand,the Internet economy develops rapidly,and new business models are constantly promoted while integrating traditional business forms.It is impossible for accounting standards to formulate relevant standards for every business in the market,so a set of standards with wide application scope and strong operability is needed.Based on this,in 2014,IASB and FASB jointly issued a new revenue standard.Meanwhile,China revised the original revenue standard and construction contract standard in 2017 while maintaining convergence with international accounting standards,and issued accounting standard for Business Enterprises No.14-Revenue(hereinafter referred to as "new revenue standard"),which provides more reasonable revenue recognition and measurement for Internet enterprises to follow.From the perspective of Internet enterprises,this paper takes Amazon enterprises that have implemented the new standards as the research object,and studies the revenue recognition of the industry under the new revenue standards.First of all,domestic and foreign literatures were sorted out to understand the problems existing in the original income criterion and the characteristics of the new income criterion,so as to lay a theoretical foundation for the paper.Secondly,by combing the types and characteristics of Internet business,this paper reveals the problems existing in the types of original revenue recognition,revenue recognition time points,special transactions and the matching of revenue and cost of Internet enterprises.Next,by comparing the new and old revenue standards,we can find that the new revenue standards pay more attention to the view of assets and liabilities,the view of decision usefulness and the accrual basis.Finally,the case study of Amazon.This paper introduces Amazon’s revenue recognition method under the new revenue standard from the aspects of online sales,third-party seller services,prime membership and other business,and analyzes in detail the impact of the new standard on Amazon’s revenue recognition method and corporate performance.Then we think about the problems and reasons of Amazon’s application of new revenue standard,and try to put forward relevant suggestions from the perspective of financial personnel,enterprises and regulators,hoping to provide some reference for the application of new revenue standard of Internet enterprises in China.