Research On Revenue Recognition Of S Game Company Under The New Revenue Standard

Since the beginning of the popularization of the Internet,the development momentum of the industry relying on the Internet has been very rapid,including the game industry,which was once regarded as a flood beast,and has also developed vigorously.In particular,China’s online game market has become the world’s top.At the same time,revenue recognition related to the game industry should also be taken seriously and regulated.The promulgation of the new revenue standard has filled the gap in the revenue recognition regulations for the online game industry to a certain extent,but in the actual operation of enterprises,it is inevitable that there are more or less problems due to the operating model.Based on the theory of asset liability and the theory of income and expense,this paper also studies the background and specific content of the formulation of the new revenue standard,and compares the content of the new and old standards,and clarifies the new requirements of the new revenue standard for the current enterprise revenue recognition.Secondly,by analyzing the revenue characteristics of the online game industry,the difficulties of the online game industry in implementing the new revenue standard are summarized.On this basis,the representative S company in China’s online game market is selected as the case company,and the results achieved in the application of the new revenue standard are analyzed and summarized by understanding the revenue recognition methods of the company in four different operating models.In studying the implementation of the new revenue standard by Company S,it summarized some of the problems that still existed in its revenue recognition: there was a risk of fraud in corporate revenue recognition;Inadequate accounting for promotional activities;Game life estimates are unreasonable.After analysis,it is concluded that the reasons for these problems are as follows: online game enterprises themselves have special characteristics,and the goods they produce are virtual;In-game promotions are complex and diverse;There are many influencing factors for the game life cycle,etc.Therefore,in order to help S company better solve these problems,the following countermeasures are proposed: First,for the new revenue standard,the financial personnel of the enterprise should continue to study in depth and strengthen communication with business personnel to ensure that more reasonable judgments can be made when professional judgments are required;Second,the income from promotional activities should be reasonably classified,and specific treatment methods should be proposed for different types of promotional activity income;Different types of data should be added to provide a more adequate basis for reasonable estimation of game life and player game cycle.It is hoped that through the case of S Company,it can bring certain reference opinions and suggestions to the majority of online game companies when implementing the new revenue standard.