On problems in and countermeasures on accounting practice in the combinations of enterprises in China

摘要

In response to the ldquodual systemrdquo structure with both the purchasing method and the right combining method adopted in the Standard for Business Combinations promulgated newly in China, this Article has herein analyzed the possible profit manipulation arising out of the selection of combination method on accounting practice of this country and proposed countermeasures thereon. The Author holds that these problems deserve attention of related authorities and it is imperative to strengthen supervision to ensure that the Accounting Standard for Business Enterprises - Business Combinations can be put into true play instead of being turned into a tool of manipulating business profit.