Comparative Study Of Chinese And American Enterprises Valuation Standards

In October 2014,the finance ministers of the 21 economies of the APEC region issued a joint announcement at the Beijing conference for the first time that they needed to narrow down the issue of assessing industry differences among countries.At the same time,business activities such as mergers,acquisitions,bankruptcies,and restructuring have become more frequent,leading to an increasingly important role of corporate valuation in the market economy.Under the dual influence of convergence of international standards and increasingly frequent corporate transaction activities,in September 2017,the China Assets Assessment Association revised the ‘assessment practice guidelines for assets — corporate value'.Compared with the excellent evaluation criteria in the international assessment industry,there are obvious differences in the evaluation criteria,qualifications,method selection,and report content of the Chinese enterprise value evaluation criteria from the internationally outstanding corporate value evaluation criteria.Considering that the United States,as the world's largest economy,enterprise valuation has matured in the 1980 s.In addition,the enterprise value evaluation part of the International Evaluation Standards(IVS)draws on the theoretical results of U.S.corporate valuation,and its drafting work also depends on the completion of the U.S.evaluation community.Therefore,this article uses the guidelines for corporate valuation in the United States Evaluation Standards(USPAP 2018-2019)as a reference,and compares them with the guidelines for valuation of Chinese companies(2017).The similarities and differences are analyzed.This paper adopts the total score structure.First,it compares and analyzes the corporate value standards of China and the United States from the aspects of structural content and accounting standards.In terms of structure,the China Code pays more attention to details and separates the establishment of corporate value andintangible assets according to the characteristics of the assets.In respect of the harmonization of accounting standards,the Chinese Standard focuses on the coordination with accounting standards,while the American Standard does not cover such aspects.Secondly,according to the division of the Chinese enterprise valuation criteria,the article compares the assessment criteria of the two countries from the basic compliance,operational requirements,method application and disclosure requirements,and explores the causes of the differences.In terms of basic compliance,according to the guidelines,the requirements and specifications of appraisers are further divided into three parts: professional competencies,practice responsibilities,and assessment hypotheses.After comparing the two countries' standards,the requirements for basic compliance are basically the same;for operational requirements,according to China,The division of the criteria,from the comparison of the two countries' criteria for clear issues,value types,and data collection,shows that the Chinese guidelines tend to be specific specifications for assessing industry processes and appraisers' job behavior in terms of operational requirements,while the US guidelines are Integrate specific operations into the development of practice,and give it to the appraisers to combine their own experience and specific conditions to comprehensively grasp;in terms of method application and disclosure requirements,they are divided into method application,conclusion processing and disclosure requirements according to the criteria clauses.Look,the Chinese guidelines pay more attention to mathematics and physics calculations and rigorous and meticulous regulations,while the American guidelines promote personal judgment and freedom of work.The analysis of the root causes of the above-mentioned discrepancies reveals that the reason for the differences between the two countries' guidelines is the difference in the status quo of the national conditions in the two countries.China's national conditions are unique,and its evaluation industry is specifically presented as:assessment industry is affected by the long-term impact of the accounting industry;evaluation criteria focus on coordination with the assessment method;lack of relevant industry experience and theoretical research.Therefore,when formulating guidelines for Chinese enterprises' value evaluation,it is necessary to integrate the particularities of national conditions with the formulation of guidelines.At the same time,the formulation of the guidelines will be affected by factors such as the development history of the industry,the market economy environment,and social habits,and these are the secondary causes of differences between the Chinese and American standards.Although there is a clear difference between the two countries' standards,the existence of this difference is due to the current situation in China.Therefore,the Chinese standard is a code of conduct for assessors that can adapt to the status quo of China's corporate value assessment industry and guide the smooth development of Chinese enterprises' value assessment activities.