Research On Revenue Recognition And Measurement Of Y Company

Online games are more interesting compared with other traditional forms of entertainment,with the development of mobile Internet,people can play online games anytime and anywhere,which better meet the entertainment needs of contemporary young people.With the continuous expansion of user groups and the continuous increase of consumption,the scale of online game market continues to expand and the income of online game market grows rapidly.Online game market has become an indispensable part of the Internet industry.Online game enterprises mainly rely on the sale of virtual currency and props to obtain income,which is different from traditional enterprises by selling goods and providing services.The business of online game enterprises is complex and special,it brings more difficulties for revenue recognition and measurement.In order to solve these problems,the Ministry of Finance launched new revenue standards in 2017,which regulate and guide the business of emerging industries.What will the implementation of the new income standard bring to the income recognition and measurement of online game enterprises,and whether it can solve some of the existing problems,it is worth studying.This paper selects Y company,a leading company in the online game industry,as a case enterprise.Firstly,introduces the operation and income measurement status of Y company,then finds out some problems about revenue recognition and measurement under the old income standard of Y company.These problems are not clear about the revenue recognition methods adopted by different operation modes,not accounting for promotional activities,not selecting a reasonable time point for revenue recognition of virtual props,and not disclosing the settlement of virtual currency.This paper discusses the reasons for the problems,analyzes the impact of the implementation of the new standards on the revenue recognition and measurement of Y company.The paper discusses whether the new standards can solve the problems existing in the revenue recognition and measurement of Y company under the old standards.Finally,this paper puts forward some measures and suggestions for Y company to implement the new income standard better,it can be used for reference by other online game enterprises.