Research on Enterprise Combination Accounting

Abstract

With the development of the global economy and the intensification of competition, corporate mergers have become an important trend in the development of modern enterprises, and accounting, as an important part of enterprise management, has received wide attention. In China, corporate mergers adopt the purchase method and the equity combination method. This paper first compares the purchase method and the equity combination method through literature analysis, and secondly analyzes the financial status and operating results of corporate mergers under the two methods of accounting, and further proposes that the imperfect capital markets system and unreasonable goodwill recognition measurement process have an adverse impact on the accounting under the purchase method, and points out the decline in the quality of accounting information and the possible profit manipulation space under the equity combination method. This paper finds that goodwill is the main reason for the difference between the purchase method and the equity combination method, and for the asset scale and net profit of the merged enterprise, the results calculated by the purchase method are greater than the results calculated by the equity combination method.