A Study On The Choice Of Accounting Methods For Business Combination In China

In the western developed countries, has undergone five large-scale enterprise merger, merger accounting is in this a merger wave in the birth and development of. In the past half century, regardless of how changes in the accounting environment, purchase method and pooling of interest method these two methods should be how to choose? How to apply? Has been the focus of debate in western accounting field. In2006, the release of "accounting standards for enterprises-Basic Standards" and38specific guidelines marks the establishment of the enterprise accounting standards system in China, China’s accounting standards achieved with the international convergence of accounting standards. However, in the "Enterprise Accounting Standards No. twentieth:" the merger guidelines, regulations on corporate merger accounting treatment is the international accounting standards and regulations, namely interest legal and buy two ways to coexist, enterprises can choose according to different situations. Therefore, through the analysis of the equity method and the basic characteristics of the purchase method, and their effects on the quality of accounting information, combined with the reality of China’s accounting environment, study the choice of businesscombination accounting method, to further improve China’s accounting standards for enterprises, encourage enterprises to reasonable choice of accounting methods, objective and fairly reflect the financial position and operating results, give full play to the role of accounting information in the effective allocation of market resources has very important practical significance.This article through to the domestic and foreign literature review, mainly uses the literature analysis method and comparative analysis method, the pooling method and basic principle and characteristic of the purchase method as the basis, relevance, reliability, comparability and other aspects of the purchase method and pooling of interest method on the quality of accounting information, and learn from America the International Council of accounting experience, combined with China’s social and economic environment, research on the accounting treatment of enterprise merger, proposed our country enterprise consolidation accounting treatment method should be adopted, and discussed the possible implementation of the existing problems and its countermeasures.