Research On The Accounting Methods Of Business Combinations Based On The Analysis Of The Financial Consequences

Frequent M&A all over the world makes the consolidation of its accounting methods research being of great significance, and different choice of accounting methods will cause different financial consequences, then the research of consolidated accounting treatment method based on the consequences is reasonable. Enterprise merger accounting treatment has experienced a long process: the change of the United States and the international agreed on the original rights and interests method and purchase method at the same time, then in 2001 the United States banned the use of the combination with rights and regulations only purchase method. The unified international guidelines issued in 2004 using the purchase method. In 2014, the IASB issued the amendment of IAS27 to mention the rights and interests method. In the practice, the business combination accounting involve multi-stakeholders, the choice of merge accounting methods is always necessary to explore. Research on accounting treatment of mergers and acquisitions in China mainly focus on theoretical analysis, the similarities and differences between international processing or the analysis of typical cases, lack of the research based on market performance in China.Based on the above situation, after the study of accounting standards and the basis of previous studies, I analyze the choice of accounting methods from different financial consequences, from the perspective of theoretical and empirical, and puts forward some improvement suggestions to improve the method of consolidated accounting in our country. Research ideas: firstly, explain the relevant theories of merger accounting methods, such as enterprise merger related concept definition, consolidated accounting method in combination with relevant theory, the purchase method and the rights and interests, applicable conditions and the characteristics of both the differences and so on.Secondly, define the financial consequences of this article, and theoretically eliminate the effects of other factors on the consolidated financial consequences and then analyzes the financial consequences of a different consolidated accounting methods. On the basis of the above theoretical analysis, respectively choose the 2012 A-share listed enterprise who merged under the same control and not under the same control as research samples,through the appropriate financial indicators to construct financial comprehensive score model, analyze the financial consequences of a enterprise with the accounting method of interests and purchasing.Based on the research conclusion, I put forward the suggestions to improve enterprise accounting methods of enterprise merger.Through the comparison of comprehensive financial score with pooling of interest method and purchase method, the empirical results show that the pooling of interest method tends to short-term optimal corporate performance, but isn’t conducive to social resources optimization allocation, and the purchase method in the longer term is conducive to enterprise development. Finally, according to the research conclusion, We put forward reasonable suggestions to perfect the accounting methods from the standard setting, regulators, capital market construction, accounting intermediary institutions and professionals.