Researches Of Some Issues About Merging Businesses Accounting

The enterprise can get the control right of the other one by merger and acquisition. Accordingly, how to account those business activities is what w~ ~called the merger and acquisition accounting. It includes the methods to deal with the merger and acquisition and the methods to prepare the combined accounting sheets of the group.There are two methods to with the merger and acquisitioln. They are called urchase accounting?and ooling of interest accounting? The ihesis compared their accounting practice , economic influence, theoretical bases, use conditions and infon-nation disclosed ect. On the basis of that, we put forward the met~ tod to deal with the merger and acquisition in our country.The accounting practice of the long ?term share ownership investment will influence the procdeure to prepare the conihinde accounting sheets. Tue thesis pointed out hte shortcomings of the accounting practice of the long ?term invesl ment in our country, and recommemded to delete he price variance of the long ?term investment? Then we divided the price variance into the tangible variance and the intai tgible variance. They are amortized by their own period. After the appropriafe record of I he investment, we deleted he combined price variance?and prepare the combined accounting sheets on a new adjusting and redonciling procedure.