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Résistance Et Confusion Dans L'Harmonization Des Normes Comptables Internationales : L'Approche Chinoise Aux Fusions Et Acquistions

Author

Listed:
  • Baker C. Richard

    (School of Business - Adelphi University)

  • Yuri Biondi

    (CRG - Centre de recherche en gestion - X - École polytechnique - IP Paris - Institut Polytechnique de Paris - CNRS - Centre National de la Recherche Scientifique)

  • Qiusheng Zhang

    (SEM - School of Economics and Management [Beijing] - BJTU - Beijing Jiaotong University)

Abstract
This article focuses on the case of the China Accounting Standards Committee (CASC), which acted in 2006 to require the use of the "pooling of interests method" under certain circumstances when accounting for business combinations. In contrast, the pooling of interests method has been explicitly prohibited by the US Financial Accounting Standard Board (FASB) and the IASB. The paper discusses two principal issues. The first concerns the cultural and economic context of Chinese economic development which led the Chinese standards setters to adopt an approach to accounting for business combinations which differs from the IASB standard. The second deals with the role played by the understanding of the underlying economics of business combinations, which leads in turn to different representations of the combination process. The complexity of accounting for the industrial reorganization that is currently taking place in China has led to the realization that some business combinations are mergers and not acquisitions. This is a significant observation and one which is worthy of greater discussion and consideration by accounting standards setting bodies.

Suggested Citation

  • Baker C. Richard & Yuri Biondi & Qiusheng Zhang, 2009. "Résistance Et Confusion Dans L'Harmonization Des Normes Comptables Internationales : L'Approche Chinoise Aux Fusions Et Acquistions," Post-Print halshs-00458944, HAL.
    • Handle: RePEc:hal:journl:halshs-00458944
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00458944
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    References listed on IDEAS

    as
    1. Biondi, Yuri & Rebérioux, Antoine, 2012. "The governance of intangibles: Rethinking financial reporting and the board of directors," Accounting forum, Elsevier, vol. 36(4), pages 279-293.
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    7. Lys, Thomas & Vincent, Linda, 1995. "An analysis of value destruction in AT&T's acquisition of NCR," Journal of Financial Economics, Elsevier, vol. 39(2-3), pages 353-378.
    8. Yuri Biondi & Arnaldo Canziani & Thierry Kirat, 2007. "The Firm as an Entity: Implications for Economics, Accounting, and the Law," Post-Print halshs-00203355, HAL.
    9. Christian Hoarau, 1995. "International accounting harmonization," European Accounting Review, Taylor & Francis Journals, vol. 4(2), pages 217-233.
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    Full references (including those not matched with items on IDEAS)

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