Research On The Accounting Method Of Back-door Listing

The shell company can be divided into net shell company and non-net shell company, thus the accounting methods of backdoor listing are divided into reverse acquisition method and equity transaction method. Going public through non-net shell company belongs to the research category of business combination and going public through net shell company doesn’t belong to business combination because the shell company can’t be cognized as "a business". The different judgment of transaction essence finally manifested in the accounting methods:the reverse acquisition method is essentially one kind of special purchase method and the equity transaction method, which is different from the pooling of interest method for business combination, is the concrete application of equity transaction principle in backdoor listing.Because of the contradiction between the external form and the inherent essence, the theory and practice of backdoor listing is different from the traditional business combination. This paper analyzes the connection between the purchase method and the reverse acquisition method along the clue of definition dislocation of accounting entity between accounting and law. Furthermore, the paper discusses the consolidation theory of back-door listing from three aspects respectively, thus extends the research category of traditional consolidation theory to the back-door listing area.At the same time, Chinese Accounting Standards for back-door listing hold the principles-oriented idea. However, the back-door listing cases occurred in Chinese security market is generally accompanied with a variety of structure design and process arrangements,the abstractive accounting standards can’t provide efficient guidance to specific accounting treatment. Therefore, the paper simulates the accounting treatment of actual back-door listing cases to add an annotation for the abstractive accounting standard.Finally, the different accounting methods of back-door listing will bring a huge difference in accounting consequences and economic consequences.With the analysis of two back-door listing cases occurred in Chinese security market,this paper compared the differences of accounting consequences and economic consequences between three accounting methods, and pointed out that the administrative departments should refine the definition standards of "business" to prevent the abuse of the equity transaction method.