Analysis Of The Economic Consequences Of A Corporate Merger Accounting Treatment

In the background of the economic globalization, mangy enterprises choose to merge in order to share the complementary resources and advantages. Along with the rapidly development of the market economy, the domestic enterprises merge-related accounting standards will benefit the accounting treatment forming the standardized. Furthermore, it will also promoting the financial information reflect the business conditions more truly, and then provide more valuable information for the decision-makers. Since accounting standards were first time introducing relevant regulations of accounting treatment in business merge area. After that, an increasing number of researchers began research on this issue that made accounting standards revise and improve constantly. It is generally know that all the accounting treatments will bring economic consequences including the purchase method and the pooling of interest method. Form the perspective of economic consequences, we can change the view and choose a multi-angle direction strengthen the recommendations that will perfect the business combination accounting standards.The accounting treatment of the economic consequences of the merger as the research object, combined with the research results of domestic and foreign scholars, the view that the two element system purchase method and equity method co-existence still has the basis for existence could be got, and the two kinds accounting treatment methods will produce different economic consequences. Then take A company’s business as a case, through the introduction of A company and B company of the merger process involves both the basic situation and the merge process, showing A company’s business results. Absorption of B company A belongs to a business combination under the same control,treatment of A merge business are analyzed the financial data and financial index finishing, In order to make a research on the economic consequences of comparable, supposed that A company merged with B company to meet the conditions of the same control, using the basic data once more of A company and B company, analog processing purchase method.Related to the financial data and financial indicators under the purchase method, the equity method and purchase method of economic consequences could be analyzed. After analyzing the A merge case, some enlightenment could be find, If you want to make A company business more honest feedback to stakeholders,narrowing the economic consequences of two kinds of accounting treament methods,the need for standards and regulations related to further refine, and put forward some suggestions to improve standards and the two kinds accounting treatment methods will produce different economic consequences. Then take A company’s business as a case,through the introduction of A company and B company of the merger process involves both the basic situation and the merge process, showing A company’s business results. Absorption of B company A belongs to a business combination under the same control, treatment of A merger business are analyzed the financial data and financial index finishing. In order to make a research on the economic consequences of comparable,supposed that A company merged with B company to meet the conditions of the same control,using the basic data once more of A company and B company,analog processing purchase method, we can analyze the equity method and purchase method of economic consequences. After analyzing the A merge case,we can get some enlightenment, If you want to make A company business more honest feedback to stakeholders, narrowing the economic consequences of two kinds of accounting treatment methods, the need for standards and regulations related to further refine,and put forward some suggestions to improve standards.