A Study On The International Convergence Of Chinese Accounting Standards For Business Combination

Abstract:Since twentieth century, the worldwide business combination growing, China’s position in the international competition increasing, but in a long time the accounting treatment of Chinese business combination with international processing method are not uniform. This has restricted the international development of Chinese enterprises, especially the international accumulation of capital. Therefore, with the increasingly popular cross-border mergers and acquisitions, the international convergence of accounting standards for "Business Combinations" is particularly important.Research on the international convergence of accounting standards for Chinese enterprises is to compare the relevant provisions of Chinese "Accounting Standards for Business Enterprise No.20-Business Combinations" with "International Financial Reporting Standards No.3-Companies Merged" By comparing and analyzing the two standards from four aspects of development, content, scope of application and theoretical basis, identify the different aspects of Chinese accounting standards for business combination with International Financial Reporting Standards in the definition of the concept, the theoretical basis and accounting methods, then study the principles and strategies to follow in international convergence process of Chinese accounting standards for business combination.The paper is divided into six parts. The first part describes the basis, background, significance, and literature review of this thesis; the second part defines the basic theory of the business combination from four aspects of the concept of a business combination, motivation, accounting treatment and the theoretical basis of reporting; The third part first discusses the basic norms of Chinese Accounting Standards for business combination and International Financial Reporting merger guidelines, then by comparing and analyzing the two standards, come to a conclusion that Chinese business combination rules and international merger guidelines are basically the same as in the general direction, but there are still some differences in the content, concept definition, accounting treatment methods and basic theories; The fourth part analyzes the reasons why Chinese business combination guidelines and international merger guidelines have not yet fully converge; The fifth part show that Chinese accounting standards for business combination should grasp the substance over form principle, integration into national economic and cultural principle and consistent principle in the international convergence process.At the same time put forward strategies to be taken when continue converge to the international merger guidelines:in the macroscopic criteria,we should optimize the accounting environment, build our financial accounting conceptual framework, establish the feedback and evaluation mechanism of accounting standards, and strengthen accounting professional quality and compliance strategies; we should pay attention to solve the problems in seven aspects in the microscopic criteria of international convergence of business combination:the definition of the basic concept, the specifications of the contract merged, the measurement issues of merger on price, fair value measurement issues, fully goodwill adoption, the use of the pooling of interest method, and guidelines consistent problem; The sixth part sums up the whole paper. Only do we converge the above problems, can we truly achieve the international convergence of accounting standards for business combination, which lay a good foundation for Chinese enterprises entering into the international market and attracting investment in the international mobility of capital, and effectively maintain microeconomic benefits of enterprise as well as national macroeconomic interests.This paper mainly uses the specification research method to study. In the part of literature review used the inductive method; In describing the business combination regulations of Chinese Enterprise Accounting Standards and International Financial Reporting Standards adopted the deductive method; in the analysis of the differences of regulations and the influence to Chinese enterprise used the comparative analysis method, on the basis of comparison and analysis, identify the causes and puts forward the strategy.