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Accounting Issues Behind TCL Stock Exchange Merger--Research On Accounting Methods Of Stock Exchange Merger

Posted on:2005-07-31Degree:MasterType:Thesis
Country:ChinaCandidate:C L ZhangFull Text:PDF
GTID:2156360152967813Subject:Business Administration
Abstract/Summary:PDF Full Text Request
Consolidated financial statement is a relatively new research field in China. International Accounting Standard No. 22 Merger and Acquisition set general regulation on the method of merger and acquisition. Treasury Ministry of China announced Enterprise Accounting Regulation in 2001, setting some basic principle on consolidated financial statements. But detailed regulations on accounting entry of merge and acquisition are unavailable. The enterprise business activities are becoming more and more complicated. The current consolidated accounting statute can't cover all the issues in practice. It's an emergent problem in accounting field to set up standards of consolidated accounting and related entries. In present dissertation, the accounting entry under pooling of interest method is discussed based on the analysis of TCL Group stock exchange merger. The correctness of the accounting entry is proved by two methods. The economic meaning behind the accounting entry is also discovered. Supposing that TCL Group adopted purchasing method, difference between the two methods is briefly analyzed. Considering the influence on the financial statement of existing group and interest of original shareholders, pooling of interest method is more helpful to protect interest of every party and decrease cost of merger. It's natural for TCL Group to use pooling of interest method.Additionally statutes and evolvement of American consolidated accounting is summarized and analyzed in present dissertation. It's rational and feasible to utilize pooling of interest method in China. But it was delayed by the absence of related regulations. It's urgent that detailed accounting standards of merge and acquisition should be set up and related mechanism should be established.
Keywords/Search Tags:Stock exchange merger, Pooling of interest method, TCL stock exchange
PDF Full Text Request
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