Asset Restructuring Of Listed Companies In China Accounting Issues

Nowadays, assets reconstruction is a frequently discussed topic in the business community. Whereas in the western security markets, assets reconstruction traces its history back to more than a century ago and accompanied the economic development in the western countries. It is widely adopted to optimize distribution of social resources and business capital, to enhance profitability and, consequently, promote the economic growth. Since middle and late 1980s, China's business community has gradually come to realize the importance of assets reconstruction and put into effective practice.At the end of 1992, Baoan Group's acquisition of Shanghai Yanzhong Co., Ltd marked the prelude of assets reconstruction of China's listed companies. Thereafter, with the deepening of stated-owned enterprises, strategic adjustment of economic structure and fast development of China's security market, more and more cases of assets reconstruction between listed companies have carried out.Waves of assets reconstruction call for corresponding changes in accounting. Viewing from a global perspective, accounting researches in assets reconstruction in western developed countries, such as UK and USA, has achieved some results and IASC has issued several related accounting standards. However, views about many fundamental accounting problems related to assets reconstruction still vary from people to people. Over the past few years, cases of assets reconstruction in China have sprung like mushrooms, but the related accounting researches have fallen far behind the demand in real practice. Therefore, it is highly urgent to carry out researches on accounting issue related to assets reconstruction, which is indispensable to the making of relevant regulations for real practice.Assets reconstruction impact on accounting is omni-directional. Because the accounting methods are nonstandard and not overall, which makes some listed companies choose accounting methods for their own purpose or choose the unspecified methods in accounting standard, a lot of accounting problems emerge during the assets reconstruction of listed companies. The author chooses three important and comparatively outstanding accounting problems in this paper to discuss: The choice ofaccounting methods of M&A, assets divestment and assets replacement. The paper's basic content and structure run as follows.The first chapter deals with assets reconstruction in China in general terms, including the conception and significance. Based on review of the past and present, the author analyzes the means and characteristic of assets reconstruction of China's listed companies, as well as the challenges to accounting theory and practice caused by assets reconstruction. The end of this chapter focuses on the study perspective of accounting research about assets reconstruction.The second chapter discusses the choice of accounting methods in M&A. Firstly, the author compares the purchase method with pooling of interests method, and their differences are theory hypotheses, accounting principles, accounting consequences and accounting information. Secondly, Current situations of accounting methods in M&A of China's listed companies, including current regulations and their inadequacy, are treated, followed by the application of pooling of interests method in equity exchanges among China's listed companies. For better illustration, the author selects TCL Group's absorbing merge with TCL Telecommunications as case for study. After that, the author puts forward some suggestions for the perfection of accounting methods in M&A practices and choice of accounting methods.Discussions on accounting methods in asset divestment are mainly dealt with in the third chapter. By comparison with foreign countries, the author analyzes the accounting methods in asset divestment in China's listed companies and points out the existing deficiency. In the end, effective means for improvement are also put forward.Beginning with the international comparisons of related accounting methods, the fourth chapter center...