The Research On The Recognition And Measurement Of Revenue For The Game Enterprises

In the age of Internet,the game section has become one of the major businesses in the competition of the big Internet companies.However,in 2016,the "2015 Annual Report on Accounting Supervision by Listed Companies," issued by the China Securities Regulatory Commission,pointed out that there are inconsistencies between the judgments of listed companies regarding the timing of online game revenue recognition and the measurement of related amounts,and the problem of non-standard disclosure of accounting policies for revenue recognition is also prominent.How to reasonably apply the principle of revenue recognition has become a major challenge for game companies in accounting.In addition,on July 5,2017,the Ministry of Finance revised and issued the "Accounting Standards for Enterprises No.14-Revenue".The new income criteria have changed significantly compared with the old ones.These changes have various impacts on the game industry.From this it can be seen that the research on revenue recognition and measurement for game companies needs to be further studied.This paper uses the method of case study and uses 37 Interactive Entertainment(Shanghai)Technology Co.,Ltd.as an example to study the current standards of revenue recognition and measurement for listed game companies in China and explore their existing problems in revenue recognition standards.And based on the new revenue guidelines to be implemented in China,we will study the impact of the implementation of the new guidelines on 37 Interactive Entertainment,and put forward suggestions for the application of the game companies in revenue recognition and measurement in China.The innovation of this paper:(1)Conducting a comprehensive review of the development of the game industry in China,and summarizing the application status of revenue recognition and measurement principles in China's game industry from the perspective of the industry;(2)Comparing the revenue recognition and measurement principles of domestic,Hong Kong and US-listed game companies to find out where domestic listed game companies can learn from;(3)Based on the existing research,we will further explore the influence of the new income criterion on the revenue recognition and measurement of the game enterprise,and analyze it by qualitative and quantitative two aspects,which is of great practical significance.The main findings of the paper are as follows:(1)The operation modes of China's game companies are mainly divided into three types:independent operation,joint operation,and authorized third-party platform operation.Enterprises need to choose total method or net method to confirm revenue under each operating mode,but some companies‘revenue recognition principles have not been disclosed in detail;(2)The principle of income recognition and measurement of 37 Interactive Entertainment has no clear distinction between the "gross method" or the "net amount method",business disclosure is incomplete,and the timing of revenue recognition is not clear,and there is no explicit provision for the confirmation and measurement of revenue from game items;(3)The new revenue standard will affect game companies in terms of revenue recognition.of game items,timing of game license revenue recognition,identification of principal responsible persons and agents,variable pricing,and accounting of channel operator costs.The practical significance of this article lies in the analysis of the current problems in the revenue recognition and measurement principles of game companies in China,and analyzes the impact of the new revenue standard on game companies,providing practical suggestions for the game companies' revenue recognition and measurement standard,and improves the quality of accounting information for game companies,which is conducive to the healthy development of China's game capital market.