How to Record Revenue for Rewarded Video Ads in Mobile Games
Recording revenue for ads where a user chooses to watch a video in exchange for in-game 'virtual currency' or items.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Accounts Receivable - Ad Network | Asset (+) | 5,000.00 | - |
| Revenue - Rewarded Video Advertising | Revenue (+) | - | 5,000.00 |
💡 Accountant's Note
Rewarded video is a high-completion ad format. The 'performance obligation' is usually the 'Completion' of the video (CPV - Cost Per View). Because the user is incentivized, completion rates are near 100%. Revenue is recognized when the 'Reward Trigger' is fired by the app, confirming the user watched the ad to the end and received their virtual item.
Practitioner & Systems Framework
💻 ERP Architecture
Since no actual 'Cash' is paid to the user for the reward, the virtual item has zero cost of goods sold. However, the 'User Retention' impact is a key KPI analyzed alongside this revenue stream.
⚠️ Audit Flags
Ad-skipping hacks. If users are found to be using modified apps to get rewards without watching ads, the company must reverse any revenue recognized from those sessions.
📄 Required Documentation
Video completion reports (VPAID/VAST 'Complete' events), app-event logs for reward issuance, and the ad network settlement report.
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Expert Analysis by Qusai Ahmad
General Accountant Supervisor & IFRS Specialist
Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.
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