The Study On Chinese Accounting Standard Of Business Combination

With the establishiment of Chinese market economic system and the modern enterprise system and the development of Chinese securities business, recently more and more enterprises achieve the target of oneself strategic development by business combination . Business combination not only occurs in the domestic enterprises, But also in domestic and overseas enterprises. Business combination has become an important factor which can influence the development of modern economy. Chinese accounting standard about buisiness combination is instituted far late, the first accounting standard of business combination issued is the interim provisions on financial statements of Business Combination by the Ministry of Finance in 1995. Later, the Ministry of Finance issued several provisions on it in succession, they are mostly the interim provisions on the accountant questions of enterprise annexation, the solutions to the accountant questions of joint-stock . Ltd. company and so on. But with the deep development of market economy and innovative modalities of business combination, these can' t adapt the demands of economic development gradually. In early 2006, the Ministry of Finance formulated and enacted our accounting standard about business combination basing on the actual conditions in China and on reasonable content of FASB and IASB.The article begins with the introduction of the evolution of the accounting standard about business combination of China and foreign countries, basing on elaborating primary content of China enterprise accounting standard sbout business combination and on comparing it with foreign standards on it, studies the problems revolved in new accouting standard, then points out the shortcoming of new accouting standard about business combination and putting forward corresponding proposals.The article is made up of seven parts.The first part :introduction of the research background,research present situation and research technique, and of the article structure .The second part: introduction of the evolution of Chinese and foreign accounting standard about business combination .The third part: introduction of the basic concept,main structure and characteristics of Cinese new enterprise accounting standard about business combination.The fourth part:comparision of Cinese enterprise accounting standard about business combination with foreign IFRS3 and FAS141 from these aspects of applicable scope,the concept of business combination,the accountant processing methods,the identification of purchasers and the recognition and measure of good will.The fifth part:study of the problems involved in Chinese enterprise accounting standard about business combination under common control, pointing out the shortcomings of it and proposing corresponding proposals .The sixth part:study of the problems involved in Chinese enterprise accounting standard about business combination under non-common control, pointing out the shortcoming of it and proposing corresponding proposalsThe seventh part:proposing the main conclusions and new ideas of the article, and pointing out the shortcoming of the article which need further to improve.