Study On The Impact Of M&A Accounting Treatment Upon The Performance Of M&A

A corporate merger is to achieve its long-term development planning and implementation of an effective business strategy, the economic activities with the accelerated process of industrialization and rapid development of enterprises of various fields have involved.The face of increasingly fierce international competition in the market, more and more companies are committed to expanding the scale of operation, and enhance their own scale advantages in market competition, in order to obtain more development opportunities. Large-scale merging events to bring heavy pressure to the corporate accounting, whether from the operation of the measurement methods, cost accounting and other accounting practices, from the concept of mergers, business objectives, norms that gave the consolidated accounting standards more high demand. The accounting treatment of business combinations, are divided into the pooling of interest method and purchase method, the two merger accounting treatment is based on different theories, after the merger event will be disclosed differences in the reporting of information to the enterprise the operation of various degrees.This study is different merger accounting treatment for merger performance, the study sample is divided into the same under the control of corporate merger and two types of business combination not under common control, the use of the financial indicators of these two types of samples of principal component analysis the score obtained both the year before the merger, the merger was a year after the merger, performance score, in order to analyze the changes using the pooling of interest method and using the purchase method of business conditions.Paper using a combination of normative analysis and empirical analysis, application charts, formulas and mathematical models and other research methods to understand the basis of the business combination accounting treatment methods of background and research status, combined with the theory of the business combination, for differentmerger accounting treatment of the accounting consequences of in-depth analysis, lead to research ideas based on accounting indicators of the performance evaluation of a business combination. Then, a statistical method using principal component analysis to establish a performance evaluation model of the business combination, to rate the overall performance of the combined company, was used to compare the pooling of interest method and using the purchase method to business conditions.Finally, in the case of TCL Group, a business combination to analyze, verify the empirical findings in the case of merger accounting treatment by simulating two different accounting consequences of the merger with the actual business operating performance changes carried out, mutatis mutandis, to analyze the rights and interests in a business combination combinationlaw by reason of the preference and the possible adverse consequences, combined with the economic development of China’s current market conditions, indicating that the reasonableness of pooling of interest method to retain the China accounting Standards for Enterprises No.20-Business Combinations "and the merger of the accounting treatment of choice has important applications in accounting practice.