Influence Of In Vitro Incubation On Accounting Information Quality

In recent years,the enthusiasm of listed companies to use mergers and acquisitions for expansion has greatly increased,but it is not easy to find high-quality mergers and acquisitions resources.Compared with investment banks,PE(Private Equity,private equity investment)has greater advantages in selecting,cultivating and tracking projects.Therefore,listed companies are more willing to cooperate with PE to improve the efficiency of mergers and acquisitions.The in vitro incubation model of listed companies setting up industrial M&A funds through joint PE has not been developed for a long time in my country.Coupled with the particularity of its operation method,companies have certain deviations in their accounting treatment.The requirements have not been perfected with the innovation of the economic model,so that the accounting treatment cannot accurately reflect the real financial status of the enterprise in the process of accounting treatment of related businesses,which affects the quality of the accounting information of the enterprise.This paper takes Meinian Health as an example,discusses its use of M&A funds for in vitro incubation and medical examination center,analyzes its accounting treatment method from the perspective of operation mode and business substance,and further explores the effect of M&A fund in vitro incubation mode on accounting information quality.It provides some ideas for enterprises to correctly handle M&A funds and related information disclosure,and also provides some suggestions for relevant departments to improve accounting treatment standards.As of December 31,2020,Meinian Health has established 6 M&A funds with PE institutions for in vitro incubation and medical examination centers.This paper firstly organizes and discusses the connotation and related theories of in vitro incubation of M&A funds.Then,it introduced the background of Meinian Health’s in vitro incubation and the scale of the M&A fund.Then,based on Meinian Health’s accounting treatment and analyzing its impact on financial statements,it can be found that the buyout fund is classified as available-for-sale financial assets and measured by the cost method.The accounting treatment method of business combination not under the same control after the merger will affect the quality of accounting information to a certain extent,including asset information,liability information,profit and loss information and related information disclosure.Through research,it is found that the complexity of in vitro incubation,relevant accounting standards,imperfect information disclosure system and lack of professional knowledge of report users are the main reasons for the decline of accounting information quality.In view of the above reasons,this paper puts forward the following suggestions: further improve the standard of control rights,improve the transparency of accounting information of listed companies,strengthen the supervision of mergers and acquisitions,and improve the professional ability of report users.