Research On Revenue Recognition,measurement And Disclosure Of Internet Online Video Industry

While many industries are enjoying the dividends brought by the technological advances of the Internet,the online video industry has been losing market share in recent years.At the same time,there is a long way to go for online video industry to develop user payment habits,and high content costs have made making profit a major challenge for it.Due to these,with insufficient cash inflow,continuous financial support from the capital market is particularly important.However,at the beginning of 2020,LK.O and TAL.N were successively exposed to financial fraud,and there was a crisis of confidence to China Concept Stock enterprises in international capital market.Shares of A Company,a leading online video platform,fell as much as 19% after the announcement of SEC to investigate the short-seller allegations that it inflated revenue and expenses through new business methods such as barter sublicensing and dual membership programs.But after reading the short selling report,the allegation of financial fraud is more about questioning the appropriateness of the revenue accounting for the emerging transaction.Based on the above information,this paper studies the recognition,measurement and disclosure of revenue of the online video industry.This paper uses literature research method to retrospect previous studies on the online video industry and the application of new revenue standard.It also introduces the content of the new revenue standards applicable to the online video industry,the revenue source and the general situation of recognition,measurement and disclosure of revenue of online video industry.This paper adopts case analysis method to study the recognition,measurement and disclosure of revenue of A Company under the new standards,analyzes the reasons for its shortcomings,and puts forward suggestions from the perspective of enterprises,supervisor and standard setting institution.For the problems existing in the recognition,measurement and disclosure of revenue of A Company,this paper mainly finds the following points:(1)The current revenue recognition and measurement methods of membership service have become the practice of online video enterprises and industries.This service contains many privileges,each of the privilege is distinct and not all privileges are completely consistent in the future cash flow,but all the privileges are accounted bundled,and the performance obligations of the membership service are not properly split;(2)There isn't an active market for sublicensing business,the fair value measurement method makes that the amount of sublicensing revenue is easy to manipulate;(3)The business model makes it difficult to achieve matching between revenue and cost according to the traditional benefit principle,which brings challenges to the matching principle.(4)In terms of income information disclosure,there isn't mandatory regulation which can provide industry-specific information disclosure guidance,and proprietary costs reduced the willingness of companies to voluntarily disclose information.The investor demand-oriented information disclosure is not realized,and the information disclosure of membership revenue and advertising revenue is not sufficient.This paper analyzes the reasons for the above problems and puts forward some suggestions.Suggestions from the perspective of enterprises :(1)moderately split the privileges of membership;(2)Strengthen the information disclosure of barter sublicensing business;(3)Implement Matching principle oriented by decision usefulness;(4)Strengthen the voluntary disclosure of revenue information.Suggestions from the perspective of supervisor and standard setting institution:(1)supervise and issue guidelines on industrial information disclosure;(2)guide the company to conduct personalized disclosure.The online video industry is difficult to gain profit in the short term,and it is urgent to earn investors' trust and continue to get their financial support.The goal of this paper to study the implementation of revenue standards on this industry is to provide certain reference and then to improve the relevance and transparency of revenue accounting of listed online video company,which can help them avoid losing the trust of investor due to suspicion and malicious short selling,and get a long-term and stable foothold in the capital market under the condition of guaranteeing their own integrity.