Empirical Research On Accounting Policy Choice Of M&A

With the depth of economic globalization, large scale of M&A spreads over the world. It does not only have large impact on economic structure, but also bring up rigorous challenge to regulating the accounting for M&A.Accounting for M&A has been a issue concerned both in the field of accounting theory and practice. And the choice between the purchase method and pooling of interests method is the core of the issue. Using different approach to measure M&A will lead to different accounting result and even different economic consequences, and then may also influence the M&A itself. In the process of gradual development and completion of socialism market economy, the method of Stock-Exchange M&A is rising in our country. And that results in the appearance of pooling of interests method in our country. Therefore, the study of accounting methods dealing with M&A becomes an even significant task internationally and internally.This article bases on the contracts perspective of accounting policy choice and the theory of economic consequences, detailedly expounds the two accounting methods for M&A, the purchase method and the pooling of interests method. The paper also analyzes the difference between the two methods. Then linking the actuality of Stock-Exchange M&A in our country, analyzes the reasons why pooling of interests method is preferred in M&A with the empirical research method. Finally, combination with our country's reality, this article put forward some advice, in order to guiding the practice of accounting for M&A.