The Research Of Accounting Treatment In Business Combination For Shenyin Wanguo And Hong Yuan Securities

In recent years,with the continuous advancement of China's economic system reforms,large-scale corporate mergers and acquisitions and restructuring have emerged in the capital market,and China has ushered in a wave of mergers.Through merger transactions,companies can reset the combination of various resources,optimize resource allocation,achieve synergies,and further enhance their competitiveness.At the same time as companies conduct merger business activities,the combined accounting method has become one of the hot topics in the theoretical community.The United States Accounting Standards and International Accounting Standards have abolished the equity combination method in 2001 and 2004 respectively,and only use the purchase method in the merger of enterprises.Due to the special structure of China's economic system,the accounting standards that were implemented in 2006 divided the accounting of corporate mergers into control rights.According to whether or not the control rights of one company before and after the merger were transferred,the equity method and the purchase method were adopted respectively.deal with.Since the promulgation of the Guidelines,domestic scholars have conducted a lot of research on the applicability of the accounting treatment methods of China's enterprise mergers and how to further improve the consolidated accounting methods,but no unified conclusions have been formed.The equity combination method and the purchase method understand the essence of the business combination from different perspectives.The measurement basis on which the assets and liabilities are identified is inconsistent,and the resulting financial results are not the same.In-depth research on the equity combination method and The accounting treatment under the purchase method is of great significance in guiding and standardizing the practice of corporate mergers in our country.This article is based on the domestic and foreign scholars' research on the method of merger accounting,summarizing the relevant research results,and expounding the relevant theories and concepts of the business combination andmerger accounting methods,starting with the theoretical basis,accounting treatment,impact on financial data and financial indicators.Compare and analyze the two accounting methods.Finally,a concrete analysis was conducted in conjunction with the case of Shenyin&Wanguo share swap absorption and merger with Hongyuan Securities in 2014.After analysis,it has been found that there are drawbacks in the use of the two treatment methods,but at this stage,the pattern of co-existence of the equity combination method and the purchase method is in line with our country special economic conditions,but the existence of the two methods in the application process.The defects should be regulated.At the same time,Shenyin&Wanguo merged Hongyuan Securities as China's largest securities firm integration case so far,and research on this case has strong practical significance.