The Study In Theories And Practice Of Internet Accounting

With the current ever-increasing trend of business combination, the study of accounting methods dealing with consolidation becomes of an even significant task internationally and internally. This article starts from the general concepts of business combination, analyzes in detail the two main accounting methods (Purchase and Pooling of Interest) and our present accounting method dealing with consolidation, and puts forward several proposals for the draft of the standards of Business Combination.Chapter 1. Introduction. Introduce briefly the definition, three basic forms, two payment types and three accounting methods of business combination.Chapter 2. Comparative study of Purchase and Pooling of Interest. First trace back the historical development of the two methods. Then introduce the Purchase method and Pooling of Interest respectively. Finally come to the conclusion that Purchase will be the ultimate unique method of business combination.Chapter 3. Current accounting of business combination in China. In view of the "Consolidation Difference" occurred on the consolidated statement, analyzes the Difference of Interest Investment, Consolidation Difference and Goodwill in detail. Through two case study of applying "Pooling of Interest" in absorption combination, confirm it is an innovative method but somewhat lack of regulation. Also point out the existing theory of consolidated statement.Chapter 4. Several proposals for Business Combination. By setting out from the relations between accounting standards and business environment and absorbing the prevailing international comments on business combination, put forward several proposals for the draft of Business Combination Standards. There are: distinguish methods under common control; select Purchase or Pooling of Interests; determine the validity date; recognize the purchase cost and relevant fees; determine the discernable assets and liabilities and their fair value; determine the value of minorities; recognize the goodwill, information disclosure. Wish the endeavors can help push forward the development of the theory and practice of our accounting on business combination.