Research On Legal Accounting Information Distortion Of In Vitro Incubation Project

Due to the irrational industrial structure and low industries' concentration in China,the demand for M & A is increasing,but the immature capital market limits the financing ability of enterprises,which makes financial capital unable to support the development of the real economy.In recent years,“in vitro hatching” has been widely used in the industrial layout by enterprises to place immature or loss-making subsidiaries in the “outside” of the financial report,and when the opportunity is ripe,the subsidiaries will be acquired and consolidated.And the “Listed Company+PE” M & A fund model with Chinese characteristics has realized the connection between financial capital and industrial capital.However,the negative news about the in-vitro-hatching expansion model gradually increased in the past two years.Some investors previously thought that setting up a M & A fund would help the company to expand its operation scale.Now it is considered that this is the company's trick.The change in attitudes of investors,as well as the differences in perceptions of companies and investors,is partly due to accounting treatment.In order to deeply analyze the legal accounting information distortion caused by the current accounting treatment of in vitro hatching project and propose effective measures for reference,this paper selects Aier Eye as the research case,and analyzes in detail the impact of in vitro hatching accounting treatment on financial statements,and the difference between accounting information and actual business information.This article hope to remind the report's users to pay attention to the hidden risks under accounting information,and provide reference for the improvement of relevant accounting methods.Aier Eye is the largest professional eye hospital group in the world.By the end of 2017,Aier Eye has established 4 M & A funds with PE institutions,141 in-vitro-hatching hospitals,and 9 of them were acquired in 2017,achieving closed-loop operation of in vitro hatching.Aier Eye is a typical case.This paper firstly sorts out and summarizes the connotation and investment logic of M & A fund.Secondly,it introduces the background of the in vitro hatching of Aier Eye,as well as the scale,decision-making system,operation and consolidation of the M & A fund.Then,it analyzes the accounting treatment's impact on the financial statements,and it can be found that the accounting treatment of the available-for-sale financial asset and the accounting treatment of the business combination not under the same control have been beautified to some extent.The financial statements present a “scam” to investors.“Modified Photo” is not illegal,but it is not true.It delays the solvency reduction and distorts the profitability indicator.Based on the actual situation of the in-vitro-hatching project,it can be found that there are differences between accounting treatment and economic essence of in vitro hatch The control of the M & A fund is relatively vague.Based on the non-control accounting treatment,the confirmed assets are inconsistent with the actual business scope of the enterprise,the liabilities cannot reflect the expected economic outflow of the enterprise,the income and risk are decoupled,and the profit and loss of the in vitro hatching project cannot be the timely implementation and the overall performance of the project have also been distorted.Through research,it is found that the complexity of transactions,the defects of accounting,the insufficiency of accounting standards,and the lack of accounting knowledge of report users are the four deep-seated reasons for the distortion of legal accounting information.For these reasons,this paper puts forward the following suggestions: standardize the M&A fund market,develop accounting for matters under the premise of technical feasibility,accelerate the updating of accounting standards in the face of emerging trading models,and strengthen accounting knowledge education in capital markets.The main innovation of this paper lies in the innovation of research perspective,and analyzes the distortion of accounting information from the economic essence.