ZS Group Consolidated Finance Based On Equity Method And Cost Method Report Preparation Study

The rapid development of the market economy has led to the increasing number of enterprise mergers and the improvement of the relevance and reliability requirements of the consolidated financial statements.China’s consolidated financial statements have been relatively late compared to Western developed countries,but joint-stock companies have been listed on the Hong Kong Stock Exchange,the British Stock Exchange,the New York Stock Exchange and other world-renowned trading institutions.In order to complete the stock exchange on the financial information requirements,the joint-stock company opened a prelude to the preparation of China’s consolidated financial statements.Listed companies,shareholders and creditors to prepare consolidated financial statements to reflect the Group’s overall assets and liabilities,thus reflecting the Group’s profitability and solvency.Therefore,the preparation of the consolidated financial statements related issues is the subject of academic circles has been discussed.Based on the analysis of the relevant documents at home and abroad,the consolidated financial statements are prepared under the purchase method,and the case analysis of the consolidated financial statements of ZS Group is carried out by case analysis method,comparative analysis method and depth interview method.There are two basic approaches to the preparation of consolidated financial statements:the cost method and the equity method.The above two methods have similarity,but there are some differences.In the preparation of the consolidated financial statements,the use of different treatment methods will have a different impact on the accounting process.In practice,the cost method and the equity method can be chosen,but the actual worker does not understand the similarities and differences between the equity method and the cost method.In the face of this situation,the main objective of this paper is to analyze the difference between the equity method and the cost method in the preparation of the consolidated financial statements.The two methods are compared in all directions to find the different effects of the two on the consolidated financial statements,Law and equity law in the practical work of the application to provide some reference and help.At the same time the scope and applicability of the cost method:If the proportion of shares change,you can not only offset by the amount of the purchase date.At this point,it is not appropriate to directly use the cost method to prepare the consolidated financial statements,you can first adjust the parent company’s long-term equity investment and the owner’s equity interests related to offset entries,and then use the cost method for preparation.