Research On Accounting And Auditing Framework Of Business Amalgamation

Third Session of the Ninth Natio^l People's Congress (NPC) was helding in Beijing from March 6 to March 15. As the 21^th century approaches, this meeting served as a link between past and future. The session passed Premier ZhuRongji?s report on the work of the government. The report summarized on bow well the national economic and social development plans for 1999 were implemented and put forward a draft plan covering the central and local budget plans for this coming year. In the report, Premier Zhu pointed out that China's national economy maintained steady growth in 1999. The growth rate of gross national product (GNP) had achieved the desired goal, the economic structure had been regulated and the economic benefit bad been improved. We bad made great progress in reform of state enterprises, the restructure of key stale enterprises continued to carry forward and great numbers of large-scale enterprise groups were combined. The internal reform of enterprises and the transform of operational mechanism had further strengthened. Through business amalgamation, restructure alliance and management enhances; the loss making lprge and medium-sized state and state-holding enterprises had obviously decreased. These progresses demonstrated that the effective implementation of business amalgamation bad great significance on the reform of state enterprises, the organization of large-scale enterprises groups, readjustment of economics structure, improvement of economic benefit and enhancement of development quality of national economy. Premier Zhu stated further that speeding up strategic regulation of economic structure would be the urgent demand of extending domestic demands and enhancing economic growth, as well as the fundamental step to keep abreast of economic development changes and international competition. Market-orientation should be maintained in regulation and optimization of economic structure, as well as the re-organization and upgrading of industrial structure should be enhanced to improve economics of scale in key industry. Thus it can be seen that the brilliant exposition in enhancement of strategic regulation of economic structure in Premier Zhu?report not only aflirm the significant effect Of business amalgamation in strategic regulation of economic structure, but also point out the way of development of business amalgamation in China. Consequently, this thesis will begin with the theoretical basis and practical application of business amalgamation, and aims to discuss the structure of accounting and auditing problems in this field, especially the structure of accounting and auditing frameworks. The thesis expects to make profitable exploration on theoretical research and practical manipulation of business amalgamation. The theoretical research on business amalgamation is the basis of structuring of accounting and auditing frameworks in this field. Because only if the concept and form, the motivation and synergy, as well as the various schools of theory has been better understood, can the economic essence and special accounting treatments hiding behead the appearance be seen clearly. Thus the selection and determination of accounting treatment approaches and accounting disclosure contents can be more accurate, more appropriate; the implementation of business amalgamation audits can be more effective as welL The research on business amalgamation practice is the guarantee of structuring of accounting and auditing frameworks in this field. Because only if the whole process, every steps and detail problems of its implementation have been better understo...