Effect Of Long-term Equity Investment Follow-up Accounting Method On Financial Statements

In March 2014,the Ministry of Finance issued the newly revised Enterprise Accounting Standard No.2-Long-term Equity Investment.The new standard of long-term equity investment in 2014 further standardized the accounting recognition and measurement of longterm equity investment compared to the old standard of 2006.With the rapid development of our country's economy,the establishment and improvement of the capital market has achieved great success.On this basis,more and more companies are increasingly concerned about long-term equity investment.In this way,the related accounting issues have brought great challenges to accounting.Accounting is not immutable,there is often a certain degree of variability,the value of the enterprise has a very significant impact on the measurement.This paper will be based on long-term equity investment,focusing on its accounting method conversion and changes in the financial statements of enterprises to carry out in-depth research.This paper studies the effect of long-term equity investment on the financial statements of qianghai life,and adopts a combination of normative research method and case study method based on Chinese and foreign scholars 'literature on cost method and equity law.Firstly,it reviews and summarizes the previous literature research.Thirdly,summarize(2014)the accounting scope of long-term equity investment and the confirmation of investment income,and analyze the reasons for its changes;Then,combined with the case of Qianghai Life Insurance's massive increase in possession of Vanke(2014),the follow-up accounting method of long-term equity investment accounting scope,investment income recognition,and the conversion of cost method to equity method affect the financial statements of enterprises;Finally,the conclusion and enlightenment of the change of the long-term equity investment accounting method are obtained by summarizing the cases.