Research On The Preparation Of Pro Forma Financial Information In The Major Assets Restructuring Of Listed Companies

With the structural reform of state-owned enterprises and supply front,major assets restructuring is frequently conducted by listed companies in China's securities market,which leads to further integration of market resources and improvement of market vitality.Pro forma financial information is one of the indispensable documents required by CSRC during major assets restructuring which was closely related to the restructuring and going public of state-owned enterprises in the first place.Since beginning,regulators haven't established standards,which have caused the confusion of compilers while preparing and of users while reading.How to prepare appropriately becomes a major problem for every participant in this market.This paper intends to study the preparation of pro forma financial information in several types of major assets restructuring,such as the business combination not under common control,the business combination under common control,reverse acquisitions and so on.Firstly this paper would review the developing process of pro forma financial information both at home and abroad to make a comprehensive and detailed explanation of its concepts,characteristics,objectives,information quality requirements and compilation principles.And this paper would explain different accounting treatments while preparing under different types of transaction.It is nearly impossible to enable the seamless connection between pro forma financial information and historical financial reports which are based on different preparation basements.So this paper suggests that regulators should establish standards for preparing as soon as possible.In the meantime,compilers should take the various factors into consideration which may occur during the preparation period in every specific compilation situation.Compilers should choose assumptions cautiously and particularly explain the reasons and preparation process in the notes.It would be better to realize the value of information if the compilers fully warm risk to users too.