Analysis on Hanging on to Pooling of Interest Method

For the business combination, the accounting method is involved with two main ones: pooling of interest method and purchase method.

At present, there are two methods in the business combination transaction of the international--purchase method and pooling of interest method.

It traces back to the original concept of pooling method,examines the evolution of relevant FASB standards,and then provides the theoretical base for supporting the use of pooling method in “Repurchase & Recombination IPO” in China.

FASB and IASB have abolished the pooling method,only use the purchase method.

This paper expounds the differences between the pooling method and purchasing method in definition,pricing foundation,combination cost,accounting information quality and the treatment of combination cost,and probes into their applications with a case.

This paper studies the conceptions of two accounting methods of M&A, and discusses about their advantages and disadvantages respectively and then analyzes the use of two methods in the case of economic environment in China and finally puts forward the pooling of interests method for regulating the market.

Especially, the international elimination to the pooling of interests method have an apparent contrast.

FASB and IASB eliminated the Pooling of interests method one after another.

Especially it analyzes the reasons that maintain the pooling of interest method,and judgement for continuity of equity.

But, because of the old system and the restrict of the ideas, at present economy live, private economy still was subjected to thus or so of inequality treatment, its legal rights also subjected to the invasion.

Second, legal right is existent.

It is a legal right for enterprises.

The construction of legal aid system for peasant workers is not only an important way to protect their legitimate rights and interests,but it is also the internal need to construct a harmonious society and a new socialist countryside.

E-commerce has brought us in many conveniences, but it also generated a large number of legal issues: these issues, the legitimate rights and interests of the consumer protection issues more prominent.

Huang Zunxian is a modern renowned diplomat,who had been active in taking a variety of measures to protect the legitimate rights and interests of Chinese laborers,and had achieved specific success during the period of serving as consul general in San Francisco and Singapore.