Greenland Group Borrowed The Research On The Accounting Treatment Of Jinfeng Investment

In recent years,with the rapid development of domestic enterprises,demand for funds is growing.Due to the limitations of the current financial markets and the banking system,private enterprises financing activities subject to many constraints?But as the main form of listing,IPO direct listing threshold is very high,the cost is very high,not only that,and it will take a long time,many companies have abandoned this way.Based on the economic environment,many companies have turned their attention to public financing.But IPO,the mainstream method of listing,has high threshold,high cost,long cycle characteristics and so on,so many small and medium enterprises have given up this way of listing.In such a case,the backdoor listing(also called "reverse purchase")is concerned by more and more people because of its short cycle,relatively low costs.Particularly,when the news that IPO suspended for a year came out in November 2012,hundreds of companies waiting to enter the capital market have to list indirectly,which directly led to a number of backdoor listing emerge in the A-share market in 2013.According to China's current guidelines,the accounting treatment of the backdoor listing include reverse purchase method and the equity transaction method.Most of backdoor listing of companies have chosen "net shell" structure of the transaction which is applied to equity transaction method.This article we will take the case of Greenland Group repurchase Jinfeng Investment as an example,use these two methods to account,and compare the differences of accounting consequences and economic consequences between the two methods.Then we will explain why acquiring firm prefer to purchase “net shell”from the perspective of equity financing,and debt financing;the same time,we will discuss the issues of transaction rice and merger transaction costs in this case,and explore the existing accounting standards problems encountered in practice.At last,we will give suggestions that improve counter purchase accounting standards and regulatory mechanisms.At the same time as the case of Greenland Group repurchase Jinfeng Investment has its particularity,both groups before and after the actual control per capital for Shanghai SASAC,thus arising out of discussions about restructuring transactions between countries belong to the controlled company is under the same control restructuring.The discussion about determining the transaction price and the combined cost of the case,exploring theexisting accounting standards encountered problems in practice;finally put forward his suggestions on the perfection of accounting standards and regulatory mechanism of reverse purchase.Through this study,we get the following enlightenment: first,to clear the equity transaction principle;secondly,strengthen the backdoor of the extent of information disclosure,in order to reduce the transaction cost;finally,various risks should continue to focus on the transaction process.Problem is listing of the accounting treatment procedure,we need to set setters to further improve relevant standards;how to determine the trading price of the listing process,and the replacement of assets and other reasons,listed companies need to make more disclosure in its restructuring documents,to protect the interests of investors,the securities regulatory department should improve the corresponding regulations.Through a variety of guidance in order to achieve the healthy and orderly development of backdoor listing.