Research On Problems Of China Combination Accounting

Business combination is a kind of economic behavior, which gets controlling rights to someextent from other enterprises by property transaction so as to strengthen economic power and toattain economic goals for itself. From the angle of financial accounting, business combinationhas three kinds: merger, consolidation and acquisition. On the condition of acquisition, we needcompile consolidated accounting statements by and large. In China, the content of consolidatedaccounting statements includes not only the combination of the controlling and controlledenterprises, but also the combination of the part-owner and partnership.Consolidated statements accounting is considered as one of the three difficult problems bythe international accounting field. It is a complicated accounting operability problem. And it is acontroversial topic that contains many theory schools. The use of consolidated accountingstatements begins from the U.S.A. Some American enterprises tried to compile consolidatedaccounting statements in the late of 19th century. Thus primal mode of consolidated accountingstatements came into being. By now the theory frame and method system have been formed inthe research process by the theory and practice fields of western developed countries. In recentyears, Chinese accounting field introduces many methods of foreign consolidated accountingstatements. At the same time the exploration of relevant theory and practice is being spread.The enterprise combination, especially the acquisition will become one of the mostimportant features of Chinese economy in a long time after China joins in the WTO. Becauseconsolidated accounting arose late in China, there are many problems about the theory andpractice of consolidated accounting, which need to be solved. This paper carries on study onsome problems of China combination accounting. I hope it will be helpful to perfect the theoryand guide the practice of China combination accounting.This paper contains of four chapters:Chapter 1 analyzes the combination accounting include business combination andconsolidated financial statement so as to get a comparatively systematic theory frame ofcombination accounting. Chapter 2 contains the systematic analysis of consolidated goodwill andthe research on its accounting procedure. This chapter also makes an evaluation on the newfinancial accounting standards. Chapter 3 studies taxation relevant to combination accounting. Itanalyses the differences between accounting regulations and tax regulations in our county andstudies on its accounting procedure. Chapter 4 studies systematically on fair value to judge itspractical problem in our country. This chapter makes an evaluation on the regulations in our newfinancial accounting standards.