Consolidated Statements About The Theoretical Issues

This assertion researched some problems of theories aboutConsolidation and Combination Accounting. As we know accountingtheories are always influenced by the economic environment. So in thefirst chapter this research began with the discussing about the economicsubstance of combination and concluded that the nature of combination isto utilize the resource of the companies which involve in the combinationand maximize the value of the shareholders. Also it concluded that thecharacteristic of combination is to control the resource of subsidiaries. Onthose conclusions, this article went to the relative accounting problems.At first, basing on those conclusions above, the researcher researched theobject and scope of Accounting of Consolidation and Combination. In thesecond chapter, the object of Accounting of Consolidation andCombination was discussed. As we know there are two theories ofAccounting Object, one is the concept of Useful Decision, the other isAccountability concept. This article analyzed which theory is moresuitable to guide the Accounting of Consolidation and Combination, theconclusion is that concept of Useful Decision is better. So the objective ofAccounting of Consolidation and Combination is concluded as "to reflectthe nature of combination, and prepare the accounting information whichcan help the information users to asses the crisis, costs and profits ofcombinations. Secondly, the article concluded that the scope for theAccounting of Consolidation and Combination is included by theboundary that whether one company can control the resource of other oneefficiently. In the third chapter this article discussed the scope ofAccounting of Consolidation and Combination. And it concluded that thestandard to judge whether a subsidiary should be consolidated is thatwhether the parent company can control the resource of the subsidiary.Furthermore, in the forth chapter ,this article analyzed the relationshipbetween theories of Accounting Object and the three main theories ofconsolidation, which are Propriety Concept, Entity Concept and Parentsconcept. And the best theory of those three is Entity Concept according tothe logic analysis of the researcher. In the fifth chapter this articleintroduced some main accounting methods of Consolidation andCombination. At last, it revealed that the different methods ofConsolidation and Combination Accounting are attributed to the object,scope and the theories of consolidation and Combination Accounting. Sothe researcher argued that if we determine the object, the scope and thetheories of consolidation and Combination Accounting can be determined,then, in turn, the methods can be determined. But in fact, some methodswhich are widely used is against the logics above, the reason lies in thataccounting methods are the result of negotiation of different groups, notthe logic analysis. Innovations of this article mainly are: 1.viewingconsolidation and combination accounting from a new angle. 2. Somenew concepts were discussed, such as: object of consolidation andcombination of accounting, theory scope of consolidation andcombination accounting.3. The relation between theories of AccountingObject and consolidation was researched. And limitations of this articlemainly are: 1.It didn't apply the theories into methods. 2. Some problemswere not discussed deeply enough. 3. It didn't discuss Chinese accountingproblems about this topic.