Research Of The Pooling Of Interests Method On Business Combination Under Common Control

In recent years,with the continuous development of industrial mergers and acquisitions,enterprise mergers and acquisitions have become more and more important in this process.Since the implementation of the new accounting standards for enterprises in 2006,there has been no major revision or change in the accounting treatment method for business combination under common control,and there is a lack of regulations or guidelines for the merger of parent and subsidiary company replacement.In practice,due to the lack of clear guidelines and reference cases,the relevant accounting treatment of such transactions is prone to dispute and divergence in the application of standards,which leads to inconsistent accounting treatment.Therefore,it is necessary to study such transactions.Firstly,this paper analyzes and interprets the different accounting standards for the business combination to be studied in this case.Secondly,with the case A Co.Ltd.' accounting practice as the point of view,this paper expounds the problems and disputes arising from the application of the relevant regulations of China's accounting standards in the process of business combination,and introduces the similarities and differences in accounting treatment methods and possible results under the International accounting standards and the American accounting standards,and compares and analyzes the transaction results.Finally,the author suggests the accounting treatment method proposed.In order to provide different perspectives and materials for research and analysis,based on the assumptions of standards and application practice,the author summarizes four different methods to deal with business combination under the common control.Through calculation analysis and transaction simulation,and combined with questionnaire survey,the author thinks that reasonable accounting treatment methods should have the following priorities sequence,that is,the purchase method,modified pooling of interest method,the pooling of interest method 2# and the pooling of interest method 1#.Finally,the author suggests that the proper accounting method should be determined by the commercial nature,and the accounting treatment of business combination under the common control should be further improved.