The Study About The Combination Accounting Approach

Combination accounting serves for acquisition and merger, the importance of which determines the signification of research on combination accounting. As a special field in financial accounting, the combination accounting is very complicated and changeable, which makes numerous scholars and experts bend themselves to it for one century. Today, the demand of research on combination accounting is still urgent. The author does this research with all strength and carries on a series of innovative discussions under new period and environment, hoping for making a bit of contribution on combination accounting study.This paper includes 4 sections. The introduction expounds relevant achievements in this field along with the meaning, approach and structure of this paper; and concretely arranges innovative contents of this paper. Following the introduction, the theory part illustrates the purchase method and the pooling of interest method respectively. In terms of theory, price, preparation method and financial effects , the text analyzes the differences between the purchase method and the pooling of interest method. Furthermore, Pros and Cons of respective method might be induced. The evolvement of combination method adopted by western countries could be used by reference in Chinese characterized economy. Whether in pursuit of international convergence or on the basis of domestic conditions, whether the pooling of interest method should be adopted, and how we are able to standardize the purchase method . all of which could be explained in the section 4. The conclusion is: Oriented by pooling of interest method, we should allow the existence of purchase method, but limited.