Enterprises' Amalgamation Of Accounting Methods

Along with the deep development of economic globalization, the tide wave of M&A (Merger &Acquisition) brings along the prosperity of Stock-Exchange M&A, which become an important form of strategic M&A. In the process of gradual development and completion of socialism market economy in our country, numbers of business combinations are increasing and the ways of business combinations are being diversified. The method of Stock-Exchange M&A is developing in our country. The choice of accounting method in the process of M&A is one of the accounting's biggest controversies in the accounting theory. China is still short of the rule of combination accounting. The study of accounting methods dealing with consolidation becomes of an even significant task internationally and internally.This article bases on the basic concept and development history of M&A, at first analyzes in detail the characteristic and the differentiate of the two main accounting methods (Purchase and Pooling of Interest), and integrates our present accounting method dealing with consolidation, analyzes the feasibility and necessity of the pooling of interests method being in our country. Secondly, analyzes the TCL's merges through exchanging stock in securities business. Finally, Using the international accounting rule for reference, puts forward several proposals for the draft of the standards of Business Combination.