Study Of Business Combination Accounting Methods

Combination accounting serves for acquisition and merger, theimportance of which determines the signification of research oncombination accounting. As a special field in financial accounting, thecombination accounting is very complicated and changeable, which makesnumerous scholars and experts bend themselves to it for one century. Today,the demand of research on combination accounting is still urgent. The authordoes this research with all strength and carries on a series of innovativediscussions under new period and environment, hoping for making a bit ofcontribution on combination accounting study.This paper includes 4 chapters. The introduction expounds relevantachievements in this field along with the meaning, approach and structure ofthis paper;and concretely arranges innovative contents of this paper.Following the introduction, the theory part illustrates the purchase methodand the pooling of interest method respectively. In terms of theory, price,preparation method and financial effects,the text analyzes the differencesbetween the purchase method and the pooling of interest method.Furthermore, Pros and Cons of respective method might be induced. Theevolvement of combination method adopted by western countries could beused by reference in Chinese characterized economy. Whether in pursuit ofinternational convergence or on the basis of domestic conditions, whetherthe pooling of interest method should be adopted, and how we are able tostandardize the purchase method, all of which could be explained in thechapter 4. The conclusion is: oriented by purchase method, we should allowthe existence of pooling method, but limited. With the improvement ofmarket economy, purchase method serves the sole available one instead ofpooling of interest method, which will be gradually eliminated. However,the paper is still deficient in research scope and approach and will beimproved.