Accounting Treatment Of Mergers And Acquisitions And The Information Disclosed In Research

This essay is a tentative to try to find out an accounting method for mergence of companies, along with the rapid development of China companies' combinationThe article can be divided into three parts according to its layout.Firstly, the article analyses the current trend of China companies' combination. Since late 1990's, especially after 2000, the mergence of China companies has changed a lot. Nowadays, the climax of 5th worldwide mergence of companies is subsiding to a peaceful period, in the meanwhile, in China, the alike mergence is surging and keeps a strong upward tendency, which reflects in following aspects: significantly increasing number of merging transactions, noticeably growing quality of merging transaction and the change from previous passive mergence involved by government to present active combination based on one's own interests and for the purpose of seizing the largest profit for shareholders.The second part systematically analyses the activities of current mergence of national companies and existing problems. It compared incorporation with purchase and analyses both financial and non-financial reasons of mergence from following respects: the management synergy effect, the operation synergy effect, the developing motive of company, the marketing share effect, the strategic motive of company development. Finally it concluded the general reason and motive of national companies' combination. In the second part of the article, the author emphasized the application of national accounting methods. It also argued and studied the importance of merging accountancy and all kinds of accounting methods of companies' mergence, which includes Purchasing Method, Pooling of Interest Method, even the method of evaluating and then choosing definition, constitution, calculation of goodwill. Via a set of analysis and comparison of theories as well as arguments, the author firstly pointed that the purchasing method of mergence demands an exact valid date and the confirmation of recognizable assets and liability fair value by M&A, and accounting operation of goodwill. We need solve the problem of limit terms and elimination of shareholder rights when using the Pooling of Interest Method. Then the author points that goodwill is a kind of important intangible assets and its conduction is a key problem and should use the same way in M&A. Finally, the author emphasized information publication and supervision in securities market.In the last part of the article, a conclusion was drawn based on the above studies, the author also made some practical suggestions for future application of the conclusion. At last, the author expressed his good wish thathis article could be a reference to the future mergence of listing companies and the future application of merging accountancy.