A Study On Accounting Methods Of Stock Swap Merger

In recent years, in the economical transfer process, the environment faced by the accounting and finance of enterprises is changing continuously, The renascent things emerge one after another incessantly. Especially with the development of the China Securities Market, and the gradual expanding of the scale of listed companies, the merger and acquisition between companies keep cropping up. In the blustery trend of merger and acquisition, the stock swap merger has already become an important re organization form.The combination accounting methods are chosen differently in the world, and Pooling of Interests Method, which once was use widely in USA, was eliminated in 1999. Since China has been one of the members of WTO, the trend of accounting internationalization is required. It is necessary for us to study the choice of accounting method of acquisition by exchange of stock, so that the combination accounting information can be regulated and the securities market can be developed healthily.This paper includes four chapters. The first part include introduction, research purpose and meaning, document survey, research approach and the train of thought mainly. Chapter Two mainly introduces the concepts and forms of several kinds of merger & acquisition, then, it introduces Purchase Method and Pooling of Interest Method in accordance with the character of merger & acquisition, and the difference between them. Chapter Three analyses the merger and absorption of TCL Group as an example, compare the purchase and pooling of interest method of the financial situation, operating results and main financial targets, the different accounting treatment of the economic consequences. Chapter Four describes the history of businesses merger, how the accounting methods have been formed, the arguments and related experiences in this area, and the process of FASB blanking off Polling of Interest Method. It gives some introduction of related regulations of IFRS. it analyzes the rationality of the application of Pooling of Interests Method in China, raises the suggestions to perfect the combination accounting.According to the study, the Purchase Method and Pooling of Interests Method have merits and demerits respectively, which can influence the economy of combination enterprises, in China, the special stock structure, stock price bubble and the nonstandard assets evaluation restrict the application of Purchase Method. So at present, we should choose Pooling of Interests Method. At the same time, we should perfect the securities market and standardize the assets evaluation to close to the international combination accounting step by step.