Study On The Related Accounting Treatment Of Business Combinations In China

With the development of marketable and international economy in China, business combination becomes an active action, based on the nature of corporation, going after profits, and press of competition. Because of all kinds of ways of combination, the business combination turns into complex and there are some new questions in financial transaction.There are two methods to solve the business combination in China, that is, one is business combination controlled by one company and another is business combination controlled by non-one company. At the same time, two methods deal with two types of business combinations. Similar pooling of interests method of accounting agree with business combination controlled by one company and purchase method of accounting suit to business combination controlled by non-one company.Due to the difference of two ways, there are conflicting accounting policy aiming at the same assets or investment, owing to different objects, times and orders of buying, which will lead to incompatible foundation of accounting transaction, lacking of consistency and comparable financial information. This essay contributes to accounting transaction of business combination through investigation, contrast, analysis, collection and coordination all kinds of ideas to look for feasible method currently.