Research On The Accounting Method Of The Acquisition Of Our Country

Accounting for business combination has been an issue concerned both in the field of accounting theory and practice,there also has been a heated dispute.Using different approaches to measure business combination will lead to different accounting results and even different economic results and may also influence the combination itself.FASB and IASB eliminated the pooling of interest method one after another.In the trend of international accounting standard convergence,China retained the pooling of interest method because of her special economical environment.Therefore,studying the accounting approach has great theoretical value and practical significance.In this paper, first,it introduces some basic theories of business combination,and makes a comparative analysis of the difference between the purchase method and the pooling of interest method from the view of the theoretical assumptions,accounting treatment,accounting consequences,economic consequences,tax treatment and accounting information quality. Then it analyzes deeply the content of the new regulations of business merger and presents an analysis of the rationality about the new regulations which prescribe business combinations under common control should be accounted by the pooling of interest method,the paper gives some suggestions for the shortcomings of pooling of interest method in order to be useful for the perfect of CAS.Coming to the merger and absorption of Gezhouba Group as an example, through the financial indicators before and after the combinations,it will discusses the affect of operation situation and profitability when the business combination in common control adopt pooling of interest method.Meantime,through the simulation of the purchase method,certify that the existence of pooling of interest method maybe reasonable in our country.