The online gaming sector is one of the fastest growing sectors and this sector in India presented a remarkable story of growth. This surge is due to factors such as increased internet penetration, a growing smartphone user base, and a young, tech-savvy population. Due to these developments, many global online video companies have entered Indian market. These companies have contributed significantly to the Indian consumption and spend behaviour. Accordingly, it is important to understand the revenue recognition complexities in this sector, given various monetisation strategies. This edition of Accounting and Auditing Update (AAU) discusses few issues related to revenue recognition for an online gaming sector.
IFRS 19, Subsidiaries without Public Accountability: Disclosures, is a new accounting standard issued by the International Accounting Standards Board (IASB) in May 2024. The new standard aims to improve the clarity and consistency of financial data for subsidiaries that lack public accountability and part of that group that applies IFRS Standards. The standard provides that such subsidiaries should disclose information about their financial performance, financial position, cash flows, and significant accounting policies and judgements, in line with parent's consolidated financial statements. The new standard will simplify reporting systems and processes for companies, reduce the costs of preparing eligible subsidiaries’ financial statements, while maintaining the usefulness of those financial statements for their users. The article on this topic provides an overview of IFRS 19.
As is the case each month, we have also included a regular round-up of some recent regulatory updates.
We would be delighted to receive feedback/suggestions from you on the topics we should cover in the forthcoming editions of AAU.
For more information on this update, please write to aaupdate@kpmg.com.
