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A Study On The Accounting Method For Business Combinations

Posted on:2006-08-03Degree:MasterType:Thesis
Country:ChinaCandidate:Q X WangFull Text:PDF
GTID:2166360152494591Subject:Business Administration
Abstract/Summary:PDF Full Text Request
Recent years, business combinations in China have become more and more active, no matter in the types and scales of enterprises or in the business combinations means and accounting methods. But up till now, standards of business combinations have not been established yet. According to the existing related regulations, the permitted accounting method is close to the purchase method, in which the mode of "depreciation+ impairment" is adopted to deal with Goodwill; however, it is still uncertain whether the pooling of interests method is permitted or not. But the pooling of interests method has been popular in China, which has been accepted among enterprises. This situation is obviously not suitable to the development of business combinations.At the same time, there appears one new tendency in the choices and applications of the accounting method for business combination in the international community. In June, 2001, FASB announced that the pooling of interests method should be cancelled and Goodwill should not be allowed to depreciate, with the only method of test for impairment. Later, IASB showed the same attitude toward this issue.There appear strong differences in the choices and applications of the accounting method for business combination between China and FASB and IASB, which enlightens the author to think about whether the...
Keywords/Search Tags:the accounting method for business combination, the purchase method, the pooling of interests method
PDF Full Text Request
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