Asset Restructuring Accounting Research

Asset reorganization is now fashionable in the economic circles. However it remains immature in China, and there are many problems unsettled. The aim of this thesis is to approach the accounting problems in asset reorganization based on the general discussion of conception, orientation and forms of asset reorganization.The first chapter mainly discusses the conception, orientation, forms and basic theories of asset reorganization. Based on the analysis of some arguments on the conception of asset reorganization, I hold that asset reorganization is to improve operating efficiency and optimize the benefits and profits of the company through the optimum allocation of resources, the asset reorganization involving the adjustments of property rights, and the essence of asset reorganization is adjusting the company's boundary. According to the above conception, the forms of asset reorganization include merge, business contract and asset trade-in. And the aim of asset reorganization should be orientated at optimum allocation of resource. In addition, some representative standpoint about the basic theories of asset reorganization is related, including efficiency theory, spin-off theory, divestment theory, etc.Chapter 2 "Asset reorganization and accounting" concerns the following problems: the role of accounting in asset reorganization; the accounting issues and aspects relating to asset reorganization; the significance of researching on asset reorganization accounting. In the process of asset reorganization, the role of accounting can be described as: (1)provides owners the information, which enables them to make decisions and supervise managers. (2)takes part in the process of making decision and control, while provides information for company mergers involved in asset reorganization, (3)meets the demands for information of asset reorganization of creditors, state departments and other parties relating to the company. Asset reorganization consists of preparing phase, implementing phase and integrating phase, and each phase concerns different accounting problems.Chapter 3 "Researching on basic theory of asset reorganization accounting" discusses the influence on accounting postulate and accounting principals caused by asset reorganization. The object of accounting reports of the corporation involved in the reorganization is different from when that of the corporation in normal operational state because of the changed accounting entity, in effect of original entity's accounting postulate on the changed accounting entity's controlling right, etc. The historical cost information based on going concern of original accounting entities won't satisfy the different demands of accounting information in the reorganization process.Based on the discussion of the theory of asset reorganization accounting, Chapter 4 inquires into accounting practice according to the different types of asset reorganization. Assets valuation, goodwill assessment and its accounting process as well as merger and acquisition's accounting process, etc are the main problems concerning accounting in merger. Now purchasing method is allowed in our country. I hold that equity combination method should be adopted, but the utilizable conditions must be so seriously restricted as to prevent profit manipulations. In business contract strategies, the dispute is over asset stripping and share transferring accounting. In asset stripping accounting, the focus is the handling of a department or a branch of corporation. Accounting of transferring share focuses on recognition time and valuation basis.