| M&A has always been one of the most important ways for enterprises to achieve leap-forward development.With the transformation of China’s economy,the government has issued a series of policies to encourage enterprises to achieve technological transformation through mergers and acquisitions.In recent years,the enthusiasm for mergers and acquisitions in the capital market has been increasing.However,in the process of mergers and acquisitions,the valuation of the underlying assets is mostly based on the evaluation method based on future earnings.Future earnings are affected by many factors and have greater uncertainty.There is a natural information asymmetry in the understanding of the underlying assets by both parties of the transaction.The merged party is motivated by financing,it’s easy to cause adverse selection and moral hazard.Therefore,in order to control the premium risk,the merger party introduces a performance commitment compensation mechanism.If the company fails to achieve its performance goals,it needs to be compensated.This controls the premium risk of the underlying assets to a certain extent,protects the shareholders’ equity of the investor,and also binding and stimulating the management of the invested party.Due to the high premium and compensation,the optimistic market signal will push stock prices up,many companies are more optimistic about the value of the underlying assets,however,the realization of the company’s target profit will be affected by many factors.Due to the fierce market competition environment,the reality is complicated and changeable,many companies are unable to meet their expected profits after the expiration of their commitments,and have to face the obligation to pay performance compensation.The amount of performance compensation is usually large,how to perform accounting treatment will have a significant impact on the financial statements of both parties to the transaction.But at present,China’s Accounting Standards for Business Enterprises hasn’t given clear system specifications for this transaction,the accounting staff made inaccurate accounting treatment,so the comparability of accounting information for such businesses is affected.This paper combines existing research by scholars at home and abroad,made systematic interpretation of the relevant provisions of Accounting Standards for Business Enterprises for performance commitment compensation,and made comparative analysis with the relevant provisions of the International Accounting Standards.Make an introduction of Ofilm acquisition of Temobi,and make rational analysis of its accounting treatment,compare the financial impact of the economic consequences of two different accounting treatments and give correct accounting advice.I hope that I can bring some inspiration to the improvement of corporate accounting standards,and give reference to the accounting treatment and tax treatment of similar businesses in listed companies. |
