A Study Of Reverse Purchase Accounting Problems And Economic Consequences

Reverse purchase is a special type of merger of companies not under the same control.It is a special way for companies to achieve listing and financing.It has the characteristics of short listing cycle and simple procedure operation.In the context of the implementation of high-standard and strict standard review conditions for IPOs by the China Securities Regulatory Commission,more and more non-listed companies have achieved the goal of backdoor listing through reverse purchases in order to solve the difficulties of large-scale development.In recent years,with the increasing number of reverse purchase transactions,related accounting treatment issues have gradually attracted the attention of theorists.However,since my country's reverse purchase-related accounting standards are still in the stage of development and improvement,standard and principled regulations are difficult to guide all forms,and there are many problems in practice.Therefore,research on this has good theoretical and practical significance.OFFCN is the first pure education and training company in China to be listed on the A-share main board through the reverse purchase of Yaxia Motors.This article selects OFFCN's reverse purchase of Yaxia Automobile as a research case to analyze its listing process,accounting issues and economic consequences.Since OFFCN adopts the treatment principle of the equity trading principles,for comparative analysis,this article simulates the relevant data of OFFCN's annual report and restates its financial statements according to the principle of reverse purchase method.It compares the economic consequences of different accounting treatments in a quantitative way,and further analyzes the impact of OFFCN on company performance,corporate value,financing behavior and the interests of small and medium shareholders after reaching a listing through reverse purchase.After demonstration,it is found that the reverse purchase method and the equity trading principles treat the difference between the merger cost and the fair value of the identifiable net assets of the listed company differently.The equity trading principles is more conducive to the financing activities of the company after the listing,and it is also a reverse One of the reasons for the abuse of the equity trading principles in purchasing.At the same time,the company's performance and corporate value have been improved after the reverse purchase of OFFCN is achieved,but the interests of small and medium shareholders have been harmed.Through combing and analyzing the cases,it is found that there are difficulties in business definition in practice,easy manual operation of accounting methods,non-standard forms of reverse purchase accounting blanks,fuzzy measurement of merger costs,random and unreasonable measurement of merger goodwill,and Accounting issues such as the lack of disclosure of key information will cause corporate stakeholders to make decisions based on the financial-related information announced by the company,which will inevitably be affected by such differences,which will ultimately affect the role of reverse purchase in the capital market.And the resource allocation of the entire economy.Finally,specific countermeasures and suggestions are put forward for the accounting problems of reverse purchase.The accounting problems and the economic consequences in the case of reverse purchase of OFFCN are typical problems in reverse purchase of enterprises.It is hoped that the research in this article can provide reference for other companies,promote the improvement of relevant domestic accounting theories,and promote the healthy development of my country's capital market.