Complex Shareholding Structure Of Business Combination Accounting Issues

With the development of Chinese securities business, the pressure of competition endangers more and more financial behavior like merging and acquisition between companies, which makes the equity ownership structure much more complicated than ever before. Currently, for most Chinese biggest state-owned enterprises, the stock share of parent companies and subsidiary companies are owned by each other, moreover, the stock of subsidiary companies also belong to each other. As a result, the complexity of equity owner structure brings a lot of difficulties to the financial management as well as the accounting information system.This dissertation mainly researches the financial problems in the companies with complicated equity owner structure, elaborates the current theoretical achievement on this topic, and raise methods and solutions of my own.Working in related departments, I have done the research for more than half a year in SINOPEC. I mainly focused on helping the company designing and rebuilding the processes to consolidate all the financial data coming from subsidiary companies. Those processes have already been applied to all over the company from November of 2006, and from the feedback till now, the efficiency and correctness of financial data management improved a lot. So, in my point of view, it could act as reference and provide a lot of help to the companies with similar equity owner structure.