Business Combination Accounting, Tax Treatment And Tax Planning

After the Reform and Opening to the world, M&A (Merger and Acquisition) has developed in our country, and accounting and taxation problems about M&A become more and more noticed. Because of the complication and specialty of M&A, financial managers and accountants have more flexibility in accounting and taxation.This thesis is expected to analyze the relationship among accounting, taxation and tax planning in the clue of M&A, and furthermore, to be helpful to accounting, financial theory and taxation exercise.By the research, I want to answer these questions: 1.How many accounting methods do we have about M&A? What did the new accounting standard regulate about M&A and what does it mean?2.What's the relationship between accounting and taxation about M&A? Will the selection of accounting method affect the tax burden of the enterprise? 3. What subject should tax planning belongs to and what's the object of tax planning? Will it be helpful? How can we design the tax planning program for M&A? 4.From M&A, what kind of relationship can we find between financial accounting, tax accounting, financial management and tax planning?This thesis contains 6 parts: Part 1, the preface, which tells the motive of choosing this topic. Part 2, the concept and classification of M&A. Part 3, accounting about M&A. I introduce two main different accounting methods about M&A, compare them with each other, and analyze their own advantages and disadvantages. Then, I introduce the development of accounting standards about M&A, especially Chinese new Accounting standards about M&A.Part4,taxation about M&A and the relationship between taxation and the selection of accounting method.Part5,tax planning of M&A. I make research on which subject should tax planning belongs to and what's its orientation, and what's the principle of tax planning. Part 6,the conclusion and limitation of the thesis.My initiative viewpoint contains:1.The new accounting standard give a strict regulation to the accounting of M&A, it reflects the internationalization of our national accounting standard.2 Tax planning about M&A should pay more attention to taxation itself, not accounting. 3.The very object of tax planning should be the maximizing of enterprise's value. To compare the NPV of different tax-planning methods, we should choose the best one to maximize the value of enterprise. 4.Financial accounting, tax accounting and financial management are strongly related. Tax planning belongs to Financial management.