Research On Accounting Method For Business Combination

Based on the general concept of business combination,this paper introduces two accounting measures(Purchase Method and Pooling of Interest Method) of business combination in detail. Meanwhile,it introduces mainly the related regulations of representational accounting standards such as GAAP and IFRS for reference.Then,based on the presently economic situation in China, this paper gives a brief analysis of the rationality of the regulation that business combinations under common control should be accounted by the pooling of interests method and allowing both of the two methods exist at the same time which was issued by Ministry of Finance in February 2006,and gives some Suggestion about how to perfect combination accounting.regulation in our country.The paper adopts the research methods of combining the demonstration analysis and criterion analysis.It contains four parts.Chapter One mainly introduces the concepts and forms of several kinds of business combination,then,it introduces the purchase method and the pooling of interest method in accordance with the character of business combination,and the difference between them.Chapter Two describes the transformation of American method of businesses combination,and the process of FASB blanking off Polling of Interest Method;then it gives some introduction of related regulations of IFRS;Finally,summarizing the selection of combining accounting method in foreign enterprise.Chapter Three firstly focuses on discussing the related accounting regulations about business merger in China,then,it analyzes deeply the content of the new regulations of business merger which issued by Ministry of Finance in February 2006 and presents an analysis of the rationality and effect about the new regulations which prescribe business combinations under common control should be accounted by the pooling of interests method and allow both of the two methods exist at the same time.Chapter Four based on the above introduction and discussion of business merger gives some suggestion of business merger accounting for reference.According to the research,this paper concluded that it's rational and tallied with the presently economic situation:in our country to prescribe the purchase method and the pooling of interest method exist at the same.At the same time,there is few research On the questions that which accounting method should be adopt in business Combinations under common control and what influence will be produced if we use the pooling of interest method to deal with the business combinations under common control,and this paper will research it deeply.