Study On Accounting Treatment Problem Of Mergers And Acquisitions Of Oil Companies In Upstream Operations

Rich in reserves and stable production of oil and gas has a very importantstrategic significance to the company's continued development and growth. However,the exploration degree and the difficulty of oil and gas resources has developed inrecent years, simply by improving technology to increase production becoming moreand more difficult. Therefore, the mergers and acquisitions of upstream oil and gasoperations becoming more and more popular to oil companies. As the study ofaccounting standards in China start later than other country, there are still manyproblems in M&A accounting treatment should be improved. That's why we carry onthis research.This article consider the M$A activity in China's oil companies as the researchobject, the related theory of M&A activities and accounting as the researchbackground, by analyzing the M&A activities and the status of accounting treatmentin our country and international oil companies, to conduct a detailed study of theaccounting problems in China's oil company, consult the international advancedaccounting approach, and eventually designed a set of program to improve our M&Aaccounting treatment of upstream operations.