Study For Difficult Problems Of Cross Shareholding Accounting

In recent years, with the in-depth reform of management of state-owned property and strategic adjustment of the state-owned economy, the cross-holding of shares have become widespread in state-owned enterprises and state-holding enterprises. As a common method to operate company's capital, and a important part in the expansion and development of the companies, cross-shareholdings in listed companies or unlisted companies has become a more prominent issue.China has established some rules with respect to cross-shareholdings in different periods. But these rules are not strictly the legal norms, most of them are policy documents. These rules not only constrained by the time, but also focus on the state-owned enterprise's practice of the reform and actively promote cross-shareholdings. In China, both the theoretical and practical fields have the understanding to the positive and negative effects of cross-shareholdings, but because of the issue appeared in china quite late, its effects on companies and capital market has not caused enough concern. For now, there is still a lot of people who have no overall understanding of the positive and negative effects of cross-shareholding. They overstated the role of cross-shareholding in the state-owned enterprises reforming. However, for the cross-shareholding could cause the disorder of corporate governance structure, unrestricted application of cross-shareholding under China's current environment of corporate governance only makes the problems of balancing operator behavior become more complicated, and increases the potential risk. After the Asian financial crisis, the long-term downturn of Japan's economy and the crisis sparked by series of "bomb" explosions in Taiwan stock market, have called attention about the role that cross-shareholding played. Thus, it is necessary to study deeply.From the accounting point of view, the confirmation and counting problems derived based on cross-shareholding are urgent needs to be solved, this has already become a difficult issue during the preparation of consolidated statements. The new issued "Enterprise Accounting Standards NO.33-consolidated statements" make provisions for consolidation area and relevant information disclosure, at the same time, in order to get in line with international standards, problems of cross-shareholdings between members of enterprise group is proposed for the first time. For now, however, most of the relevent studies just stay at the level of the selection of accounting methods, lacking of material or cases supported by real company background and data. On the other hand, the available data or cases focus onThe goal of this thesis is to systemly integrate and practically apply the availablet theories by deeply analysis the real case, in order to find any deficiency and give advice. This thesis consists of five chapters:Part I, introductionIt introduces the background, meaning, literature review, ways and content of the research.Part II, introduction of the concept and functions of cross-shareholding, and concentrating on analyse the relevent available theories of cross-shareholding and consolidated statements. First, it discusses the relevent theories and thoughts of preparing consolidated statements under cross-shareholding. And then, it separatively discusses the way to confirm the stock proportion and investment income when different types of cross-shareholding structures are involved.PartⅢ, by deeply analyse a intricately structured cross-shareholding case derived from a enterprise group adhere to China National Salt Industry Corporation, it systemly integrate and practically apply the availablet theories discussed in PartⅡ, and then, demonstrate the entire process of consolidated statements preparation.Part IV, further thoughts. In this part, the writer try to find the shortcomings of theories'application, analysis the reason and propose improvement suggestion.