The Research On Accounting Treatment Method Of STO Reverse Purchased Of IDC

Since 2016,the first tier companies of China's express industry have been successfully backdoor listing,which has aroused heated debate among market investors.Reverse purchase as a new way of listing and financing plays a more important role in China's capital market.In 2008,the interpretation of accounting standards for enterprises issued a formal reference to the concept and operation standard of reverse purchase.Subsequently,it was stipulated that reverse purchase could choose the reverse purchase method or the principle of equity transaction to prepare consolidated financial statements,and has continued to this day.Along with our country counter purchase transactions become more complex,reverse purchase of related accounting norms are many serious problems in the practice,the accounting process of enterprises is not unified and standardized,resulting in merger of the main body of financial information lack of authenticity and comparability.According to statistics,in the past ten years,142 cases of backdoor listing occurred in the past 2008~2017 years,which constituted a reverse purchase case.About 90% cases were compiled by the principle of equity trading.Therefore,improving the reverse purchase accounting standards and regulating the reverse purchase practice will help to promote the long-term development of the M & A activities in the capital market.This paper starts from the basic concepts of merger,backdoor listing,counter purchase and business,to the domestic and foreign counter purchase accounting literature review,in-depth discussion of China's purchase business as well as the reverse merger cost,goodwill,rights and interests of minority shareholders and other recognized principles and existing problems,puts forward some proposals through comparing outside the reverse purchase accounting standard Chinese revised reverse purchase accounting standard.Then a detailed analysis of the overall situation of China's reverse purchase,buy the basic accounting methods used in understanding the reverse,with STO reverse purchase IDC case in-depth study of reverse purchase accounting method and the resulting economic consequences.Finally,through the analysis of reverse purchase transaction form of complex and diverse,with a great impact and cost calculation method of equity transaction principle is the preferred method of conclusion,and put forward the following policy recommendations for Chinese enterprises reverse purchase accounting treatment: first,revised accounting standards,refine the reverse purchase definition;second,the definition of business standards,clear equity trading principles;third,improve the merger cost,avoid huge goodwill;fourth,strengthen information disclosure,protect investors' right to know.I hope that through this research and discussion,we can provide a reference case for regulators and enterprises to provide a backdoor purchase accounting treatment for backdoor listing,and provide some policy recommendations for improving the reverse purchase accounting standards gradually.