Research On The Accounting Method Of Back-door Listing

In September 2016,the China Securities Regulatory Commission issued a new "Measures for the management of material assets reorganization of listed companies,in order to put forward higher requirements for reverse takeover and more stringent regulation for backdoor listing.With the rapid development of the capital market,the number of the backdoor listing rise year by year.In order to respond to market demand,the Ministry of finance formulated and issued the accounting standards about backdoor listing.However,the accounting standards formulated by the Ministry of finance about backdoor listing always lag behind the development of the capital market.Since the Ministry of finance formulated and issued the accounting standards,all backdoor listing companies has chosen the capital transaction method.From 2012 to 2016,the proportion of backdoor listing companies which adopt the principle of capital transaction declined,but the capital transaction method occupied a leading position.The structure of backdoor listing differ,the accounting treatment usually differ.To the end,the different accounting treatments resulted in different effects in financial statements of the enterprise.When the investors and other stakeholders make decisions on the basis of the financial information published by companies,their decisions are influenced by the differentiation of financial information.This paper attempts to carry out a preliminary discussion of accounting treatments and economic consequences for different structure of backdoor listing and discuss how Jiangsu academy make accounting treatment for their reverse takeover of Jinchengthrough analyzing the structure of backdoor listing and analyzing data of the successful case of backdoor listing in Chinese stock market from 2007 to 2016.Studying from accounting treatments and economic consequences of backdoor listing,the author tries to explain whythe backdoor listing enterprises prefer capital transaction method.Finally,the author draws the conclusion that: the China Securities Regulatory Commission should establish a modern over-the-counter market for the reverse takeover which not belong to the business,the author thinks that Chinese can also set up an over-the-counter market,specialized supervision.And the Ministry of finance should improve the pooling of interests method.