Research On Choosing Accounting Methods In Chinese Business Combination Based On The Economic Consequences

In reference to the international accounting standards,the ministry of finance established "the accounting standards for enterprises no.20-merger of enterprises" in 2006.IASB and FASB,which are the most authoritative in the world, cancelled pooling of interest method, however, our country remain the method. This way contrasts with the international trend, which is based on the realistic need in China. "Dual structure",which pooling of interest method and purchase method coexist, make enterprises choose combination accounting methods based on their own interests.Firstly,on the basis of accounting theory of the relevant research results,the article introduces basic concepts of two combination accounting methods.Secondly, the article has a comparison between two methods from the theoretical assumptions, application environment,the quality of the accounting information, accountant processing and so on. Then based on the basic theory of the economic consequences, the article discusses respectively the economic consequences to manegers,enterprises, investors, creditors, and government,with the business combination cases of Beijing tian hong real estate and the company of the Little swan in Wuxi.Through the introduction above, the main purpose is to combine combination accounting methods with the economic consequences, discuss the influence to the different stakeholders,which are taken by the different choice of combination accounting methods, analyze the preference for our enterprises to different combination methods from the angle of economic consequences,help the information users identify managers'choices based on their own interests to achieve a certain goal, and make the correct choices.Business combination accounting involves complex problems of accounting theory and practice. This paper discusses the economic consequences of business combination accounting methods,and obtains preliminary conclusions.