Study On The Pooling Of Interest Method In The Application Of Business Combination In China

Business combinations accounting treatment of choice has been one of the controversial problems of the accounting profession, since the United States and the International Accounting Standards Board determined that the purchase method for business combinations was the only method in the beginning of this century, the debate on the issue seemed to died down. It is can not be denied that in the accounting area of research the United States and the international Accounting Standards Board has always been the forefront, but the results of their research may not be entirely suited to other countries, such as our country business combination is different in some ways with the United States. Pooling of interest method is not suitable for the United States, and pooling of interest method of cancellation is also a trend in international, but the need still exists in our country, in practice the application of business combination is still a certain degree of rationality.The article first analyzes the purchase method and pooling of interest method of the theoretical basis of their accounting treatment and characteristics, as well as analyzed its economic consequences. Combined with our country business combination accounting treatment of the history, the article analyzed pooling of interest method in rationality and necessity. At the end, the article described some problems and solutions in our business combination.The article is divided into four parts, the first is the introduction section, which describes the research background, significance, research ideas and research methods as well as pooling of interest method and purchase method study of the economic consequences. Foreign and domestic consequence of the two accounting methods has focused differently. Foreign and domestic economic consequences of the two accounting methods have focused differently. Foreign economy focused on the market response and the enterprise value (from the reflection of stock price) to do the impact study, which may be attributed to other countries, particularly more developed capital markets, the U.S. has resulted in major domestic focus on the abolition of pooling of interest method and two methods combined enterprise value (financial indicators) impact; the second part is theoretical analysis, namely, two methods of economic analysis of the consequences. This section analyzes the characteristic of the purchase method and pooling of interest method of their theoretical and accounting basis firstly.For pooling of interest method and the purchase method from the difference in understanding the nature of mergers and acquisitions, accounting and valuation basis and is based on the accounting assumptions for analysis and comparison of two different. The difference between those who, on this basis, respectively, both domestic and foreign economic consequences of the analysis; third section summarizes the accounting treatment for merger of Chinese enterprises development and evolution, combined with Chinese special economic environment, pooling of interest method described in our country in the past, the application of business combination is reasonable, and the concepts from the pooling of interest method, the reality of our business combination and our unique corporate finance and regulatory circumstances and analysis of pooling of interest method in our business combination in the continued existence of reasonable and necessity; fourth section is case studies, in order to absorb the merger Shanghai Electric Power shares, for example to specify pooling of interest method in our application of business combination, and analysis the established problems and improved methods of pooling of interest method in China’s enterprises in the merger application process by cases.The article used the traditional combination of theory and case analysis, through a case to be further proofed of the theory. The article studies having limitations and shortcomings is no doubt, in view of the nature of a master’s degree for the accounting profession, so the theory is not enough to explore the depth of the theoretical analysis; especially the case source of information were limited to the merging parties on the network to disclose any information and some financial news Web site. Selected case representation and case studies such as the depth is worth researching.