A Study On Accounting Treatments And Regulation For The Integrate Assets Swap

Since 1997, cases of assets restructuring occurred frequently in Chinese stock market. The way of restructuring varies, including M & A, Assets Spin-off, Assets Swap and Assets Trust etc. Among them integrate assets swap is the most special one for its quickness to improve companies'performances and thoroughness to change companies'industrial structures. So it has attracted wide attention and given rise to much controversy in Chinese stock market.As a special and controversial assets restructuring type in recent Chinese stock market, there are many problems in the integrate assets swap, such as the unclear nature of the transaction, the unfairness of related trade, the failure of accounting measurement to reflect the substance, and the controlling shareholder's abuse of assessment methods to manipulate the fair value. Due to the specialities and innovative characters of integrate assets swap, its criterion, operation, pricing, disclosure and regulation all need theoretical support. An investigation of the current status and forecast of its prospect are also necessary. The timeliness and effectiveness of regulation will not only affect the impartiality and efficiency of Chinese immature stock market, but also influence the security and integrity of state-owned assets directly.As such, in this dissertation, the author studies the integrate assets swap in four steps: firstly, the author describes the types and approaches to carry out the integrate assets swap, makes clear the substance of the transaction and gives the definition, then discusses the policy background, the reason for its popularity and the influencing factors. In this way, the author proves the rationality of the integrate assets swap's existence. Secondly, the author gathers and analyzes the cases of the integrate assets swap occurred in Chinese stock market, concludes the regularity in its operation, and points out the accounting and regulatory problems. Meanwhile, the author analyzes the feasibility of the integrate assets swap between group company and listed company, eliminates the inaccurate thought that integrate assets swap will lead to the loss of state-owned assets, advocates state-owned enterprises to upgrade their industrial structures by integrate assets swap. Thirdly, the author discusses the impact on the accounting entity and going-concern assumptions concerning the substantive changes on the assets bringing by the integrate assets swap. Some advices onaccounting treatments for the integrate assets swap are put forward through analyzing and comparing the differences of accounting standard among Chinese accounting standard, US GAAP and IAS/IFRS. Finally, the author analyzes the regulatory problem on the abuse of assessment methods in the integrate assets swap by controlling shareholders to manipulate the fair value, and puts forward a suggestion to improve the regulatory efficiency on fair value assessment, that is using the settlement system in American stock market for reference and applying it to the integrate assets swap in China.This dissertation consists of six chapters, the main contents are as follows:Chapter 1, Introduction. The author puts forward the research background and motives, reviews the related literatures, and introduces the structure, research methods and contributions of the dissertation.Chapter 2, The definitions, causes and influencing factors of the integrate assets swap. The author analyzes the integrate assets swap from several aspects by discussing the policy background, the reason for its popularity and the influencing factors.Chapter 3, Analysis of the current status and feasibility of the integrate assets swap. The author studies the integrate assets swap cases occurred in Chinese stock market, tries to find out the regularity inside the operations, and then reveals the accounting and regulatory problems. Meanwhile, the feasibility of the integrate assets swap between group company and listed company is also discussed.Chapter 4, Study on accounting treatments for the integrate assets swap. The author discusses the accounting problems in the integrate assets swap, such as accounting entity, going-concern assumptions, and measurement property. The author uses refrence of the foreign non-moneytary transaction accounting standards and its newly changes, combining with our country's accounting standard, proposes some accounting advices for the integrate assets swap.Chapter 5, Study on regulation for the integrate assets swap. The author reviews the evolution process on the regulation for the integrate assets swap in China and digs into the existing regulatory problems. Aimed at regulatory difficulties to fair value assessment, the author uses reference of the"settlement system"in American stock market, and applies it to the integrate assets swap in China to improve the fair value regulatory efficiency and the fair value's wide use.Chapter 6, Conclusions, suggestions and limitations. The author sums up the main conclusions of the dissertation, puts forward the policy proposals, forecasts the direction for further study and points out the limitations in the dissertation.Major contributions of this dissertation are:(1) From theoretical aspect, it brought forward and discussed the issues of accounting entity's changing of its physical form caused by the list company's integrate assets swap, and other accounting theoretical problems such as the fair value measurement on the integrate assets swap. At the same time, aimed at our country's fair value regulaory difficulties, it used the new regulatory policy of"settlement system"to provide an effective system guarantee for the reasonable implication and wide use of fair value in China.(2) From practical aspect, it revealed the rationality of existence and regularity of operation of the integrate assets swap occured in Chinese stock market. And it provided the theoretical supports and policy advices on the accounting criterion and securities regulation concerning integrate assets swap.