Study On The Choice Of Accounting Policies For Stock-Exchange Combinations

The intense growing of M&A spurs on the combinations by stock exchange. Along with the mature and perfect of internal market, Combinations by stock exchange will become an important strategic combinations form. From accountants, the choice of accounting policies is continuously a hot spot, difficult point concerned by national and foreign scholar. Especially, the international elimination to the pooling of interests method have an apparent contrast. The choice of accounting policies in the combinations of TCL Group and TCL Communication and Shanghai NO.1 Store co. and Hualian Shop Co. initiate a new discussion.Simultaneously, our country's combinations accounting regular has not announced since the publishing of suggestion Draft in 1996, which illustrated the complication of the question, and aroused the author's interesting. This paper intended to analyze deeply the two accounting polices used in practice, proposed the choice of the combinations accounting policies from our country's circumstance and expected to benefit the constituting of combinations standards.In contents, firstly the theory reviewed the developed history of FASB about the combinations accounting policies at length, explained the present research situation and future trend in British, Australia andIAS in brief, in the same time, summarize some scholar's opinion in china. Based on those, the author analyzed deeply the choose about the combinations by stock exchange from three aspects, economic essence, accounting information quality, economic consequence, and obtained the conclusion: no-common control combinations should choose purchase method and common control combinations pooling of interests method.After that, the theory discussed the fifteen combinations by stock exchange occurred in china form their special background and the irrationality of choice about the accounting policies, and explained the author's opinion further: no-common control combinations should choose purchase method.In the last section, the author probed a front question-the identification of purchased corporation, concluded the whole theory and pointed out the limitation.