Enterprises-Basic

ChinaBusinessEngine商擎网Thecopyrightand/orotherintellectualpropertyrightsofChinaBusinessEngineincludingrelatedtext,images,charts,sound,animation,andvideos,andtheirarrangementontheChinaBusinessEnginewebsite,areprotectedbycopyrightandotherprotectivelaws.ChinaBusinessEngineWebsiteTel+862152289730Chinasite：www.cbize.comFax+86215228-9730Globesite：www.cbize.net1AccountingStandardsforEnterprisesNo.20-BusinessCombinationsCaiKuai[2006]No.3ChapterIGeneralProvisionsArticle1Withaviewtoregulatingtherecognitionandmeasurementofbusinesscombinations,anddisclosureofrelevantinformation,thepresentStandardsareformulatedaccordingtotheAccountingStandardsforEnterprises-BasicStandards.Article2Thetermbusinesscombinationsreferstoatransactionoreventbringingtogethertwoormoreseparateenterprisesintoonereportingentity.Businesscombinationsareclassifiedintothebusinesscombinationsunderthesamecontrolandthebusinesscombinationsnotunderthesamecontrol.Article3ThebusinesscombinationsregardingbusinessoperationshallbesubjecttothepresentStandard.Article4ThepresentStandardsdoesnotapplytothefollowingbusinesscombinations:(1)Anybusinesscombinationinwhichtwoormoreenterprisesformajointventure;(2)Anybusinesscombinationinwhichtwoormoreseparateenterprisesarebroughttogetherintoareportingentitymerelybycontractotherthanownershipshares.ChapterIIBusinessCombinationsundertheSameControlArticle5Abusinesscombinationunderthesamecontrolisabusinesscombinationinwhichallofthecombiningenterprisesareultimatelycontrolledbythesamepartyorthesamepartiesbothbeforeandafterthebusinesscombinationandonwhichthecontrolisnottemporary.Inabusinesscombinationunderthesamecontrol,thepartywhichobtainscontrolofothercombiningenterprise(s)onthecombiningdateisthecombiningparty,theothercombiningenterprise(s)is(are)thecombinedparty.Thecombiningdatereferstothedateonwhichthecombiningpartyactuallyobtainscontrolonthecombinedparty.Article6Theassetsandliabilitiesthatthecombiningpartyobtainsinabusinesscombinationshallbemeasuredonthebasisoftheircarryingamountinthecombinedpartyonthecombiningdate.Asforthebalancebetweenthecarryingamountofthenetassetsobtainedbythecombiningpartyandthecarryingamountoftheconsiderationpaidbyit(orthetotalparvalueofthesharesissued),theadditionalpaid-incapitalshallbeadjusted.Iftheadditionalpaid-incapitalisnotsufficienttobeoffset,theretainedearningsshallbeadjusted.Article7Where,duringabusinesscombinationunderthesamecontrol,theaccountingpolicyadoptedbythecombinedpartyisdifferentfromthatadoptedbythecombiningparty,thecombiningpartyshall,accordingtoaccountingpolicyitadopts,adjusttherelevantitemsinthefinancialstatementsofthecombinedparty,andshall,pursuanttothepresentStandard,recognizethemonthebasisofsuchadjustment.Article8Thedirectcostforthebusinesscombinationofthecombiningpartyshall,includingtheexpensesforaudit,assessmentandlegalservices,berecordedintotheprofitsandlossesatthecurrentperiod.ChinaBusinessEngine商擎网Thecopyrightand/orotherintellectualpropertyrightsofChinaBusinessEngineincludingrelatedtext,images,charts,sound,animation,andvideos,andtheirarrangementontheChinaBusinessEnginewebsite,areprotectedbycopyrightandotherprotectivelaws.ChinaBusinessEngineWebsiteTel+862152289730Chinasite：www.cbize.comFax+86215228-9730Globesite：www.cbize.net2Thebondsissuedforabusinesscombinationorthehandlingfees,commissionsandotherexpensesforassumingotherliabilitiesshallberecordedintotheamountofinitialmeasurementofthebondsorotherdebts.Thehandlingfees,commissionsandotherexpensesfortheissuanceofequitysecuritiesforthebusinesscombinationshallbecreditedagainstthesurplusofequitysecurities;ifthesurplusisnotsufficient,theretainedearningsshallbeoffset.Article9Wherearelationshipbetweenaparentcompanyandasubsidiarycompanyisformedduetoabusinesscombination,theparentcompanyshall,onthecombiningdate,prepareaconsolidatedbalancesheet,aprofitstatementandacashflowstatement.Intheconsolidatedbalancesheet,theassetsandliabilitiesofthecombinedpartyshallbemeasuredpursuanttotheircarryingamount.IfitisnecessarytomakeanadjustmentaccordingtothepresentStandardbecausetheaccountingpolicyadoptedbythecombinedpartyisdifferentfromthatadoptedbythecombiningparty,theassetsandliabilitiesofthecombinedparty(parties)shallbemeasuredonthebasisofthepost-adjustmentcarryingamount.Theconsolidatedprofitstatementshallincludetheincomes,expensesandprofitsofthecombiningpartyincurredfromthebeginningofthecurrentperiodtothecombiningdate.Thenetprofitsofthecombinedpartywhichhasbeenrealizedpriortothecombinationshallbereflectedthroughanitemseparatelypresentedintheprofitstatement.Theconsolidatedcashflowstatementshallincludethecashflowofthepartiestothecombinationfromthebeginningofthecurrentperiodtothecombiningdate.Whenpreparingconsolidatedfinancialstatements,theinternaldealingsofthepartiestothecombinationshallbetreatedaccordingtotheAccountingStandardsforEnterprisesNo.33-ConsolidatedFinancialStatement.ChapterIIIBusinessCombinationNotundertheSameControlArticle10Abusinesscombinationnotunderthesamecontrolisabusinesscombinationinwhichthecombiningenterprisesarenotultimatelycontroll