Research On Accounting Processing Methods Of Enterprise Consolidation

Rational corporate mergers can promote a substantial increase in corporate efficiency,and at the same time help to strengthen the company's ability to collaborate.Business combinations are increasingly used in commercial competition.In the past two decades,the accounting of corporate mergers,as a matter of common concern in China's accounting theory and practice circles,has always been in the “splashes” of accounting disputes.At present,the use of the equity combination method has been completely banned in the world.In the face of the international trend of corporate merger accounting,China has fully considered its own unique economic environment and has maintained its own characteristics in the convergence with international standards.According to China's Accounting Standards for Business Enterprises,the merger of enterprises mainly involves two kinds of accounting methods: the purchase method and the equity combination method.However,in the accounting practice,based on the different understanding of the accounting entity of the business combination and the nature of the economic business,different accounting methods are adopted,and the impact on the merged company is also different.At the same time,there are many profit manipulation problems along with the use of the method.Therefore,how to choose and improve the accounting method of enterprise merger has become a real problem in the current accounting theory circle in China.In order to improve the application of enterprise merger accounting method in our country,this paper firstly uses literature analysis method to conduct a large number of retrieval researches on literature materials and grasp the frontier dynamics in the field;secondly,it adopts the comparative analysis method to introduce the related theories of the enterprise merger accounting method.Combined with the specific status of China,from analyzes the problems of equity combination and the thinking about the present condition this paper suggests that the equity combination should be abolished,and the enterprise merger should be handled in accordance with the purchase method.Finally,points out some suggestion of improve the purchase method.