Research On Revenue Recognition And Measurement Of KY Network Game Company

Nowadays,in the Internet era,the game field has become one of the main competitive businesses of Internet enterprises.However,in the 2015 annual report on accounting supervision of listed companies,it was pointed out that listed online game companies have problems such as the time point of revenue recognition,amount measurement and nonstandard disclosure of accounting policies.The reasonable application of revenue recognition and measurement principle has been a major problem in the game industry.In addition,the ministry of finance revised and issued the accounting standards for business enterprises no.14-revenue on July 5,2017.Compared with the old standards,many changes in the new revenue standards will have an impact on all aspects of the game industry.Therefore,the research on revenue recognition and measurement of game enterprises needs to be deepened.By using the method of case study and taking KY online game company as the object of the case study,this paper analyzes the existing problems of KY online revenue treatment principle,and on the basis of China’s upcoming no.14 revenue criterion,explores the influence of the new criterion on KY online revenue recognition and measurement,and puts forward corresponding Suggestions for improvement.Innovations are as follows : Due to the introduction of the new revenue guidelines in China in July 2017,there are not many recent relevant research results on game revenue.According to the requirements of the new revenue guidelines,enterprises listed only in China have more than two years to start preparation.This study provides certain reference significance for the implementation of the new revenue guidelines for Chinese game enterprises;Topic selection is innovative.The nature of the virtual currency,virtual goods and processing method is unclear,and the criterion has not been clear rules,as the game merchants increase varieties and rich game virtual goods types,the basic types’ summary of virtual goods(instantaneous consumption,service life and long-term props)is necessary.The main research contents are: KY network has not reasonable classification for the total method and net method,game business disclosure does not reach the designated position,revenue recognition point blurred,and virtual property income related accounting treatment method has not been clear,etc;New income criterion will affect KY network game props revenue recognition time,the recognition of main responsibility and agent,the processing of variable price,contract assets and liabilities’ show,and precipitation revenue recognition,etc;KY network and China’s game industry should reasonably choose the total amount method and net method,clearly divide enterprise game business types,clearly divide consumable props and long-term props,and improve the recognition and disclosure of precipitate income.Practical significance lies in the analysis of KY network game revenue recognition and measurement of existing problems,and the effects of 14 new criteria for KY network game revenue recognition and measurement,and it would provide the KY network and game industry with income accounting practical advice and help the game companies to promote the quality of accounting information,provide favorable conditions for the sustainable development of the game industry in our country.