Study On Some Accounting Methods Of Bussiness Combination

Accounting for business combination has been an issue concerned in the field ofaccounting theory and practice.FASB and IASB eliminated the pooling of intersts method oneafter another and the continuity measurement of combination goodwill uses impairment test inthe trend of international accounting standard convergence,our country Business AccountingRule applies the way that coexist the purchase method with the pooling of interests methodand the continuity measurement of combination goodwill uses impairment test take the placeof systematical amortization method, further achieves the trend of international accountingstandard convergence.But in the process of practical application,business combination bringsome questions such as the building problem of consolidated accounting theoreticalframework,the choice of the combined accounting method,the confirm question of intemallygenerated goodwil，the applications of fair value and so on.Through the research and analysisto these problems,put forward the perfection of accounting standards and the developmentsuggestions. Theory reflects the nature of things,further research theory of consolidatedaccounting,use advanced theory to guide the practice of business consolidated accounting.Firstly,the paper combines with the domestic scholars research on the accounting method ofbusiness combination, from if cancel pooling of interests method and economic consequencesas well as combination goodwill’s impairment test and so on and so to carry on the literaturereview of the business combination.Secondly, research the problem of establishment acomparatively systematic theory frame of combination accounting,which consist by basictheory and theoretical basis,intend to get the theory support on accounting and better servicebusiness combination.Thirdly,this paper makes a comparative analysis of the differencebetween the purchase method and pooling of interest method and the different economicconsequences by two accounting method of business combination, analysis the inevitabilityand limitation and puts forward some relevant policy suggestion,because the important ofpurchase method and application of fair value, make suggestions about the improvement ofthe fair value.Fourly,analysis combination goodwill result from purchase method, analyze therelation among internally generated goodwill,combination goodwill and negative goodwill， analyze the problem of combination goodwill’s impairment test and according to theseproblems put forward the corresponding solutions,make suggestions about the recognition andmeasure internally generated goodwill. Finally, summarize the full text,look forward to thefuture development trend of China’s consolidated accounting,the author thinks that with thedevelopment of market economy,the perfection of capital market and the specification of fairvalue evaluation mechanism,our country accounting rule will cancel the pooling of interestsmethod,to achieve international convergence.