The Research On Accounting Treatment Methods Of Reverse Purchase

The development and growth of enterprises can not be separated from financial support.Listing financing is one of the most effective and largest ways for enterprises to raise funds.Companies want to be listed for financing,in addition to the mainstream mode of IPO,backdoor listing is the other most important way.The direct listing of IPO has the characteristics of strict conditions,long time and high cost.Many private enterprises are difficult to meet the issuance standards of IPO,and indirect listing by backdoor has the advantages of relatively simple procedures and low cost,which has become an option for many companies that do not meet IPO conditions.Reverse purchasing is a way for enterprises to achieve backdoor listing.It is more and more concerned by the capital market,but the related accounting standards are still in the stage of perfection,and there are many problems in practice.For example,the identification of "business",the combination of cost measurement under non-standard conditions,the confirmation and measurement of goodwill,the specific accouting treatment of the equity trading,etc.There are cases where enterprises use loopholes in standards and financial personnel abuse professional judgments for earnings management.Consequently,the accounting treatment related to reverse purchasing is worth further discussion.This paper introduces the concept and theory of reverse purchasing at first,and compares the rules of reverse purchasing between Chinese and international accounting standards.The case of STO reverse purchase of IDC was studied,Comments were made on the calculation of combined costs for non-standard reverse purchases.Using the reverse purchasing method and the equity trading method respectively for simulated accounting treatment,the impact on the net profit and related accounting indicators of the enterprise was compared and analyzed,and the reflection of these issues in practice was elaborated.Explore the problems of existing accounting standards.Finally,it puts forward relevant suggestions for the accounting problems of reverse purchase,including refining the standards of business judgment,calculating the unified merger costs,properly handling huge amounts of goodwill,enhancing the transparency of reverse purchase information disclosure,etc.