Study On The Economic Consequences By Choosing Accounting Treatment Methods In Business Combination

The development of the technological revolution has made the competition among enterprises increasingly fierce.In order to seek economies of scale and quickly occupy market share,mergers have become the most effective "shortcut".The merger wave has lasted for a long time,and the merger problem has emerged.The choice of enterprise merger accounting treatment method is the core problem of enterprise merger,and different accounting treatment methods will bring different economic consequences.Foreign studies on the economic consequences of corporate merger accounting treatments focus on the rationality of the theoretical basis of the combination of equity,the impact of the choice of merger accounting methods on corporate value,and the three aspects of the company's preference for the combination of equity and equity.Since the implementation of the new accounting standards in China in 2006,the issue of the abolition of the law of rights and interests has mainly started from the reality of our country.The special socialist market economic system makes the law of rights and interests have its rationality.Secondly,China's research on the economic consequences of different accounting methods is,in the final analysis,a means to discuss the issue of the abolition of the equity combination method,or it will return to the choice of accounting methods.In this paper,the purchase method is applied to the business combination under the same control.By discussing the different economic consequences brought about by the two methods used in the merger,the economic consequences analysis is recalculated,which provides the feasibility for the merged enterprise in selecting the method.Analysis makes the interests of all parties balanced.This paper first analyzes the pre-merger and post-merger aspects: before the merger,the financing environment,regulatory environment and managerial compensation will affect the company's consideration of the type of merger,the economy brought about by the merger under the same control and not under the same control.The consequences are also different.The choice of the type of merger determines the choice of the merger method;from the three aspects of the enterprise,investors and management,it analyzes the different economic consequences brought by the merger purchase method and the equity combination method.Then combined with the merger of the listed companies and non-listed companies using the equity combination method,the equity combination method and the purchase method are used to simulate the calculations,and the economic consequences analysis is carried out.It is found that the study of economic consequences will return to the accounting treatment method.Choosing,and found that in the current business combination,the equity combination method has been favored by many merger companies,and even once became the means for many listed companies to get out of trouble.Finally,the paper summarizes the whole thesis.This paper thinks that there is something wrong with the use of the law of combining rights and interests at the current stage.However,the existence of the two methods will inevitably lead to the preference or even abuse of a certain method,so with the economy The development and the improvement of the system,whether the law of combining rights and interests will be cancelled is also a problem worth exploring.