Research On Issues Related To Purchase Accounting In Reverse

Shell company net shell and non net shell, the accounting treatment method ofbackdoor listing transactions into equity transaction method and reverse the purchasemethod. Borrow non net shell listed belongs to the research field of enterprise merger,and borrow net shell listed due to shell companies are not regarded as business, doesnot constitute a business combination accounting. Different judgments in thesubstance of transactions reflected in the accounting treatment: reverse purchasemethod is essentially a special kind of purchase method, while the equity transactionmethod is a practical application of equity transaction principle, different from themerger of the pooling of interests method.Backdoor listing in its legal form and internal economic essence of China,resulting in the transactions in some basic theory and practice processing is differentfrom the traditional enterprise merger. In this paper, along with the accounting and thelaw for the purchase of the main definition misplaced this clue, analyzes therelationship and difference between the purchase method of purchase and merger ofenterprises in the reverse backdoor listing, and from the control foundation,combination method, the idea of merging the three layer of the backdoor listing,merger theory are discussed, which will be the traditional combined with theoryresearch scope extends to the backdoor listing of the new field.At the same time, China’s accounting standards is used in formulating ideasbased on the principle, goal oriented, tacit knowledge contains multiple,implementation of accounting standards is difficult. From the perspective of China’ssecurities market in recent years a large number of cases, usually accompanied byrestructuring backdoor listing all forms of structure design and process planning, toprovide guidance, abstract rules to specific, special practice, this paper simulates theSheng and re backdoor Tiancheng Technology (*ST Tiancheng,600392) accountingthis case, regulations of the principle for our standard annotation adds a instance, helpthe accounting staff to understand and apply the treatment method.Finally, different methods of accounting treatment of backdoor listing will bringhuge differences between accounting and economic consequences, according toSheng and re backdoor Tiancheng Technology case, pointed out that the equitytransaction method and reverse the purchase method, can make the enterprise financial report showed a high rate of return on net assets, so companies prefer equitytransaction method, and rules suggested criteria for China’s response to the "business"this key, in order to prevent the abuse of the rights and interests of trading law.