Research On Revenue Recognition And Measurement Of Internet Enterprises

Since China put forward the goal of building an Internet powerful nation,the Internet industry in China has experienced an explosive growth.The stably increasing development and the growing business scale in Internet industry have made stakeholders increasingly concerned about the revenue issues of Internet enterprises.Internet enterprises have also created many new business models while integrating traditional formats,highlighting the inadequacies of accounting standards in regulating the emerging Internet businesses.Although there is no set of accounting principle to regulate revenue issues of Internet enterprises,IFRS 15 issued in 2014 and CAS 14 revised in 2017 provided important guidance for Internet enterprises in order to re-understand the revenue issues,standardize revenue recognition and measurement,and improve the information quality of financial statement.This paper introduces the contract-based revenue recognition model in new revenue standard.In aspect of contract,performance obligations,transaction prices,and recognition time,it sorts out the difficulties faced by Internet enterprises in the process of revenue recognition and measurement due to the virtual Internet business environment.Furthermore,this paper analyzes the main problems of Internet enterprises existing in the contract,performance obligations,transaction prices,and recognition time,then proposes specific recommendations.It is hoped that this paper can help Chinese Internet enterprises to apply new revenue standard earlier,and provide reference for relevant institutions to put forward revenue guidelines for Internet industry.