Accounting Recognition And Measurement Research Of Performance Compensation In M&A Of Public Company

With the rapid development of China's economy,the intensification of market competition and the rapid development of the capital market,more and more M & A has introduced a performance commitment compensation agreement.It appears to curb the high value of the assets and the risk of the two sides of the transaction,and can better protect the interests of small shareholders.However,with the development of the market,based on the negotiation between the buyers and sellers and the different interests of the demand,the way of performance compensation commitments produced a lot of differences.In the commitment,there are cash compensation,Stock compensation,and some are both.At the same time,the main body of the compensation can be the original assets of the original shareholders,or the controlling shareholder of the listed company.Based on the analysis of the status quo of performance compensation in China's capital market merger,this paper summarizes the characteristics and categories of performance compensation in the merger,expounds the trading perspective of performance commitment compensation in the practical operation of listed companies,and discusses the different commitments Performance commitment's economic essence,derived two types of accounting confirmation: contingent consideration and equity transactions.And then according to the specific scope of the confirmation,deeply explores the recognition and measurement principles of contingent consideration,through case analysis,and then make a suggestion.This paper argues that there are two types of accounting commitments: if the performance commitment's main body is the controlling shareholder of the listed company,then it belongs to the "equity transaction";if is the original assets of the original shareholders,then confirmed as "contingent consideration".In this study,it is found that the principle of contingent consideration in the practice can not reflect the economic essence of the performance commitment compensation,resulting in the double overestimation of the assets and profits disclosed in the accounting statements.Therefore,extending the measurement period,re-determining the adjusting events and increasing the method of the acquisition of goodwill can be the countermeasures to make the accounting statements information and the transaction perspective of management consistent.