Goodwill Of Business Combination Shall Not Be Included In Profit Or Loss.

Because goodwill is intangible, when a listed company buys an enterprise, although its brand value is very high, it is not the real gold and silver that we get.

In practical operation, financial personnel should pay attention to the following three aspects: first, the two elements of merger.

There are at least two meanings in the formation of enterprise merger, one is the acquisition of another or more.

Control of (or business); two, a merged enterprise must form a business.

Two is about "

Understanding.

In accordance with the requirements of the enterprise accounting standards, the term "control" used in the field of financial reporting mainly refers to the control of enterprise's financial and operational policies and to benefit from it.

When judging whether an enterprise is in control of the invested entity, it should consider comprehensively the ownership structure, board composition, and daily management characteristics of the invested units.

In the current period, changes in the scope of merger resulting from the purchase of subsidiaries or other reasons shall be in the annotations.

The change of the scope of the merger, the basis for judging the control of the invested unit, etc.

If the invested unit whose proportion is less than 50% is incorporated into the merger scope or the proportion of the investment is higher than 50%, the unit that has not been incorporated into the scope of the merger shall disclose the basis for judgment in the annotations.

The three is about the understanding of "business".

The accounting department of the Ministry of finance, "the reply to non-listed company on the purchase of listed companies' equity to achieve indirect listing accounting treatment" (financial accounting [2009]17) stipulates that "business" refers to the combination of certain production and operation activities or assets and liabilities within the enterprise, which has the ability of input, processing and output, and can independently calculate its cost or income. It can provide dividends, lower costs or other economic benefits to investors and other forms of return.

The combination of assets or assets and liabilities has two elements, namely investment and processing, which can be considered as a business.

If the assets and liabilities combination is a business, it should be judged by the actual situation of the enterprise.

Generally speaking, there are two kinds of consequences for a listed company to pfer part of its shareholdings, that is, loss or loss of control.

In order to gloss over the reports, some companies add color to the company's performance. The understanding of the "control" right is widespread. Abuse of control business, especially in the accounting standards Interpretation No. fourth, has lost the handling of the comprehensive income generated by the control of the original subsidiaries. In 2010, the preparation and users of the financial statements should pay particular attention to it.

The sixth provision of the Ministry of Finance on the implementation of enterprise accounting standards for listed companies and non listed enterprises to do the annual report in 2010 (accounting document [2010]25) stipulates that enterprises have lost control of their original subsidiaries by disposing of some equity investments or other reasons, and the accounting treatment of individual reports has been pformed from cost method into equity law.

"Accounting standards for enterprises Interpretation No. Fourth" stipulates that residual equity should be remeasured in accordance with its fair value in the days of loss of control.

The difference between the consideration of the equity disposal and the fair value of the remaining shares, minus the difference between the original assets and the net assets that the original subsidiary will continue to calculate from the date of purchase, should be deducted from the original shareholding ratio.