The Research On Accounting For Business Combination In Aspect Of Financial Information Quality

This paper mainly deals with the accounting for business combination, based on the research of financial accounting information quality. After reviewing the formation and development of accounting regulation for business combination, the paper compares the accounting information quality, combination theory, scope for combination, accounting method, usage of fair value and goodwill within several countries' context. Then the paper comes out with some suggestion on the theory and practice on the accounting of business combination, in expectation of benefiting our own accounting's development. There are four sections in this paper. Section 1 reconstructs the accounting information quality concept framework, based on the research of each component of accounting information quality. This paper indicates the accounting quality develops with the environment change and users' demand's advance. Comparing to USA, IASB and British, China is short of a system of accounting information quality. It's a shortcut for us to give full consideration to others experience. In the same time, the paper enlarges the content and gives the first priority to "comparability", "understandability" with Reliability and Relevance. Section 2 looks back to the reform of accounting for business combination and analyzes the development of accounting information quality. The author believes that the ongoing pursuit of high-quality accounting information is the root for development of accounting for business combination. The accounting information quality is the standard of selecting, evaluating accounting standard, procedure and method. Section 3 gives a detailed research on business combination for accounting issues theoretically and practically, including financial accounting information quality, business combination substance, combination theory and other issues involving the demands for accounting information, the influence of combination over accounting information, scope, method selection, use of fair value, combination goodwill etc. Section 4 analyzes the real situation where China's accounting stands, and gives advices on issues section 3 mentioned, in expectation of benefiting our own accounting's development.