The Choice Of Accounting Methods And The Effect Study In Reverse Mergers And Acquisitions

At present,with the development of economic globalization,more and more enterprises targeting in public.However,compared with an IPO complex audit procedures,backdoor listing program is not only simple,convenient and quick,can save a lot of capital investment for the enterprise.IPO conditions cannot be achieved as a result,many companies choose through the backdoor listings to achieve the goal of listed companies.With a lot of companies want to enter the capital markets in such a way into the ranks of listed companies,the reverse merger and acquisition activity is also more and more get the attention of academia and attention.But the original specification of related system in China is imperfect,reverse mergers and acquisitions is chaotic.As the ministry of finance accounting department published in 2008,the accounting standards for enterprises to explain,makes our country started with the system of reverse merger in specification.In the 2010 edition of the accounting standards for enterprises to explain further perfected and developed for reverse merger regulation,the standard is put forward for the specification of reverse merger has opened up a new era,so to speak.Although norms and policies for reverse merger has experienced many twists and turns,the future will face a huge challenge,but the rules have bright and clear the government's commitment to reform to the market.But in the concrete implementation process there are still some deficiencies,such as accounting policies loopholes still exist in some ways and blank is likely to result in practice of accounting is not standard,lead to consolidated financial information published by the enterprises lack of comparability,which not only affect the legitimate rights and interests of stakeholders,will also affect the normal development of our country enterprise merger.Therefore,perfecting the related accounting standards specification,is the reverse merger accounting need to solve the problem.This paper adopts case study method and literature research from the cognizance of the reverse merger,the choice of accounting methods,the combination costs and the goodwill confirmation in reverse merger in the aspects of the problems are analyzed.Hedy holding focus media reverse mergers andacquisitions,for example expounds these problems in the practice of reflection,to explore the existing related specification in practice,the problems existing in the using process.In addition,the Suggestions from the following several aspects to improve to perfect our relevant accounting norms: make a clear definition of the connotation of reverse purchase,clear the combination costs calculation principle,reasonably confirm the goodwill.