Case Studies On The Consolidated Financial Statements Of Cross-border M&A In MBS Group

Business combination is a common transaction in the period of rapid economic development,and the accounting methods related to business combination has been one of the long-term research and debate topics in the theoretical and practical circles.In recent years,with the in-depth development of China's market economy,cross-border operation has become an important strategic measure for listed companies to cope with the fierce market competition environment,broaden production and operation channels,and open up new investment markets.Compared with the M&A of domestic,the cross-border M&A will face a more complex economic environment.Due to the differences of domestic and foreign accounting standards,cross-border companies often need to prepare consolidated financial statements,to meet the supervision of different securities markets and information disclosure requirements.In 2006,China's Ministry of Finance issued new accounting standards,which is in line with the IFRSs.However,it still retains Chinese characteristics,there still exist many differences.This increases the difficulty of the financial personnel to prepare the consolidated financial statements.Therefore,it is of great theoretical and practical significance to study the issues related to the preparation of financial statements of cross-border M&A.Based on above background,this paper first analyzes the theoretical research and practice status of consolidated accounting at home and abroad by using the method of literature analysis and comparative analysis,introduces its development process,elaborates on different theories and methods of consolidated financial statements at home and abroad,and summarizes the differences in accounting treatment.Then,by using the method of case analysis and on-the-spot interview,aiming at the typical cross-border acquisition cases of MBS group,This paper analyzes the rationality of the accounting treatment methods selected in the level of consolidated financial statements,analyzes in detail the accounting and economic consequences of different accounting treatment methods,and sums up the accounting treatment problems that enterprises may encounter in the preparation of consolidated financial statements in cross-border M&A.Finally,from the perspective of enterprise,this paper draws some enlightenment on the preparation of consolidated financial statements for cross-border M&A.Before the implementation of cross-border M&A,enterprises should first judge whether the acquisition constitutes a business,and then choose different accounting treatment methods.At the same time,the differences in the scope of consolidated statements between the purchase method and pooling of interest method under the current domestic and foreign standards will lead to different accounting and economic consequences,which will have a positive or negative impact on the enterprise and its stakeholders.Enterprises should pay special attention to cross-border M&A.Finally,at present,there is no unified conclusion on the choice of business combination method under the same control in domestic and foreign accounting standards,When such M&A business occurs overseas,the enterprise shall reasonably choose the merger processing method according to the nature of the transaction,.This paper also suggests that our country should actively participate in such research and discussion,enhance the right of discourse,so as to minimize the negative impact of changes in relevant standards on the accounting treatment of business combination in China.