The Accounting And Taxing Issues In Back Door Listing

Back door listing, as a special way to get the financing support, playedan important role in capital market. Most companies, which can't get theaccess to IPO from the CSRC, take the path of back door listing to get thenecessary capital. The first back door listing case can date from1993, afterthat, it became popular method in capital rising in China. While, theoperations of back door listing also became more and more complicatedwith the different treatment of stock ownership and asset exchange. Theaccounting postulates and tax laws got the improvement correspondingly inthe past years. The paper summarized the different treatment in accountingand taxing issues on the basis of different operations in back door listing,helping reader understand the accounting and taxing problems in itsystemically, and assisting professionals to dealing with the problems morecorrectly.The logical line of this paper is as follows: first, the definition andclassification of back door listing are described. Secondly, the papersummarized the change in accounting postulates historically in domesticand aboard, then made a comparison between different treatments in accounting. The case of "back door listing of Rongan" gave us a practicalview of problem solving in accounting. The last part referred to the taxissues, including the law summarization focusing on back door listing, thedifferent treatment in tax, and two real cases in tax treatment. At last,general conclusion is arranged at the end of the paper.