M & A Accounting Research - Analysis Of The Applicability Of Pooling Of Interest Method

Now, in the real economic activities, being the one of the important economic activities, Business Combination is complex. During the long period, the core point of the disputation of Business Combination accounting dealing methods is the opposition of two accounting methods in Business Combination -Purchase Method and Pooling of Interest Method. About the choice of the two accounting dealing methods in Business Combination, international popular practice is to push the Purchase Method, while abolish or strictly limited the use of Pooling of Interest Method.In this thesis, the disputation between the two methods only occurs in Non-Cash Exchange, Merges (based on the exchange of common stocks). Then the thesis begins to discuss the applicability of the Pooling of Interest Method. Through the comparison and analysis between the Purchase Method and Pooling of Interest Method in the theory, we can know that based on the development degree of Chinese real Business Combinations market at present, we should permit the two methods to be available in the Business Combinations Rules in order to flourish this market and accelerate the development of Business Combinations. The real cases also show that Pooling of Interest Method has its own rooms and rationality in Chinese real Business Combination activities, Pooling of Interest Method is applicable in Chinese real Business Combinations. As long as we frame some limited regulations to standardize the use of Pooling of Interest Method, it could be used in Chinese real Business Combination activities. At the same time, thinking of the criticism on Pooling of Interest Method came from international accounting parties and the development of Chinese Business Combinations market in the future, this thesis brings forward an imagination that the progressive trend of Business Combination accounting dealing method is quite probably to unify to the Purchase Method.