Research On Revenue Recognition And Measurement Of Online Game Company A Under The New CAS 14

With the popularity of the Internet,online games have become one of the most important forms of entertainment,and their market scale is huge.Generally speaking,the sales of virtual goods are the most important source of revenue for online game companies.This part of income involves how to choose the revenue recognition point and measurement of virtual goods.In addition,the operating modes of online game companies are mainly independent operation,joint operation and authorized operation,there may be different degrees of third-party participation in each of the different operating modes.As a result,this type of revenue involves the judgment of the business principal role of online game companies when dealing with third parties.Due to the special nature of the online game industry,the old revenue criterion is not clear about the business guidance of online game companies,which makes the online game companies have different comprehension.Hence,it leads to poor comparability of accounting information among this industry.On July 5,2017,China published the CAS 14 which following the IFRS 15.There is an obvious difference between the old revenue criterion and the new revised revenue criterion,which affects the income recognition and measurement of all kinds of enterprises.Therefore,it is worth studying what challenges online game companies used the original revenue criterion will face when they implement the new revenue criterion,and what measures online game companies should take in order to require the new revenue criterion and improve their methods of revenue recognition and measurement.This paper not only interprets the IFRS 15 through literature research,but also compares and summarizes the old and new income standards to provide theoretical support.Then in subsequent discussion,this article uses the case analysis and comparative analysis.This paper selects representative large online game listed company A.In terms of the relevant information disclosed by company A and the requirements of the old and new revenue criteria,it summarizes that company A mainly faces the following challenges under the new CAS 14:(1)The revenue recognition method of virtual currency does not distinguish the existence of precipitation currency;(2)The income recognition method of virtual props is not clearly expressed;(3)The revenue measurement of agency business does not distinguish the Main Responsibility Person;(4)The income recognition and measurement method of the presentation is not complete.Then,in combination with the requirements of China's new revenue standards and the reference of the revenue recognition and measurement methods of overseas online game listed enterprises,this paper proposes specific countermeasures for the revenue recognition and measurement methods of company A from the three parts: revenue recognition,revenue measurement and disclosure.Finally,based on the case of company A and the current situation of this industry,this paper also offer suggestions for the network game industry's revenue recognition and measurement methods in China,which hopes to improve the quality of accounting information of China's online game industry and enhance the comparability of accounting information of the industry.