| The accounting treatment of business mergers under the same control has always been controversial and it is urgent to revise the relevant standards to adapt to the new economic environment.On November 30,2020,the International Accounting Standards Board(IASB)released the latest discussion draft on the issue of business combinations under the same control,which clearly pointed out that the purchase method should be introduced to the business combination under the same control,and the combination of equity method and purchase should be regulated.Specific requirements for the application of the law.It is foreseeable that the use of the purchase method to deal with business combinations under the same control will have a significant impact on the operating performance of most of the relevant enterprises in my country.In this context,Huaneng International,as a listed company with A+H shares,has dealt with business combinations under the same control in accordance with the International Financial Reporting Standards(IFRS)in its H-share annual report.Therefore,analyze the direct impact of the purchase method on Huaneng International’s business performance,explore the potential motivations of Huaneng International’s proactive use of the purchase method,and clarify whether the information disclosed by the purchase method has market value,which is important for relevant Chinese companies to respond to the accounting standards.Changing and preparing accordingly are especially critical.This article uses the literature research method,case research method and event research method to analyze the case from multiple angles.First,it analyzes the accounting policy choices of A+H-share listed companies for corporate merger transactions under the same control,and selects Huaneng International,whose operating performance is greatly affected by the purchase method,as the case company.Secondly,through the analysis of potential motivations,it is judged the starting point of Huaneng International’s adoption of the purchase method and its expected effect.The event study focuses on the short-term reaction of the market to the disclosure of the purchase method after a large-scale merger of enterprises under the same control of Huaneng International in 2017.By comparing the market reaction when the annual reports of A shares and H shares are disclosed,it is judged whether the additional operating information disclosed by Huaneng International using the purchase method has truly created value.Finally,on the basis of possible motivations and market response results,suggestions are made for relevant enterprises in my country to balance the interests of stakeholders and improve information disclosure.The research in this paper finds that compared with the equity combination method,the purchase method has a great negative impact on Huaneng Power’s profitability indicators,and the impact is continuous.Different stakeholders have certain motivations for the choice of adopting the purchase method.For Huaneng International,the influence from the government and creditors is more obvious than that of shareholders and managers.The main reason is to avoid high profits and cause concern.And get more favorable borrowing conditions.Through event research and analysis,it is found that the use of the purchase method to disclose in the H-share market has stimulated the market’s attention to Huaneng International.Compared with the additional information disclosed in the A-share annual report,the merger information has also received positive feedback from the market,but it has a certain lag.This article hopes to provide a reference for the selection of accounting policies and the improvement of information disclosure for other related companies from the perspective of the long-term development of the company and the protection of the interests of small and medium shareholders through the case analysis of the merger of enterprises under the same control. |
