The Accounting Method Of State-owned Holding Enterprise Merger

In2013, our country welcomed the biggest wave of merger，the dynamic of thelisted state-owned enterprises is particularly noteworthy. At present, our country’saccounting standard for business enterprises rules two forms of business combinationaccounting methods, the right combining method and the purchasing method. Theright combining method owns that the essence of enterprise merger is a combinationof two enterprises; the purchase method owns that the essence of enterprise merger isa kind of market behavior, equal to buying. But as it did not specify define whetherthe state-owned enterprise mergers are the business combinations under the samecontrol behavior, so it provides space for the state-owned enterprises to choose whatkind of accounting method they want.Choosing different accounting methods have different influence on thestate-owned enterprise merger performance. The author chose58representativestate-owned listed companies as sample data and12representative financialindicators to analyze. Finally the author found that in right combining method, theindicators of enterprises is better than the enterprises of using purchase method.Visible, the enterprises are more favored by the right combination method.Accounting the further discussion on this issue, especially on the impact of theinfluence by using different accounting method for the actual development of theenterprise, the author found that,on the one hand, using the right combination methodwill bring more profits, and increase the space for the enterprises’ profit manipulation,and it can be covert operated, not easily being regulation; On the other hand, the rightcombination method is also necessary to our country now, it more conform to theenvironment of economic transition in China conforms to our country’s status quomarket, and it is easier for accounting personnel to master. For the disadvantages brought by the right combination method, the authorthinks that it should be more accurately ruled for the using extent, and it should bemore clearly showed for the use of state-owned holding companies. In the currenteconomic situation, we should rule that the state-owned enterprises’ combinationunder the same level SASAC should use the right combination method, and weshould make some separate approvals for the special case, strengthen the supervisionof the enterprises’ merger in China, make the economy of our country to be morehealthy.