Optional Research On Accountant Arrangement Method Of Back-door Listing Enterprises

Back-door listing is a method for companies to conduct merge and restructuring.For the last year, the back-door listing companies were as much as65, reaching thehighest number over the years in the capital market. This explains that althoughCSRC improves a lot of the back-door listing standard from below IPO into equal toIPO, the market still remains hot about this and it increases rather than decreases.Therefore, the back-door listing still has a high value for research.During the back-door listing, the company needs to choose to adopt which kindof accountant arrangement method according to whether the shell subject and thebackdoor form a business relationship. If there is a business, it’s called non-net shelllisting and the company uses counter purchase, or when there isn’t, it’s called net shelllisting in which way we should adopt a specific accounting treatment with equitytransaction principle. Two different accounting methods will have an obviouslydifferent effect on report forms and various financial indexes after the businessmerger, and this will have a great impact on company’s later production andmanagement.During the back-door listing, the definition and standard of the existence of a’business’ between the company and the backdoor is rather obscure which gives thecompany an opportunity to exploit loopholes of laws. This paper gives advices toimprove the criterion for supervision department, to choose the method of accountantarrangement for the back-door listing and discusses the business reputation of theaccountant arrangement and the minority shareholders’ interests during the process. A case of the back-door listing process and a case of accountant arrangement areprovided as reference. So the company may achieve the back-door listing more easilyand the supervision department will know better about whether the company hasrule-breaking operations to have a better supervision on merger and reorganization ofenterprises.