Ministry of Finance, Interpretation of Enterprise Accounting Guidelines No.6

财政部企业会计准则解释第6号

March 10, 2014 | BY

CLP Temp &clp articles &

MOF explains accounting treatment for mergers of enterprises subject to the same control.

Clp Reference: 3100/14.01.07 Promulgated: 2014-01-07 Effective: 2014-01-07

Issued: January 7 2014
Effective: as of date of issuance

Main contents: When enterprises subject to the same control merge and the merging party prepares the financial statements, where the merged party was acquired from a third party by the final controller in a past year, the reporting entity arising after the merger should be deemed to have continuously existed as a member of the integration from the time the final controller began to exercise control, and the relevant accounting treatment should be carried out based on the book value of the assets and liabilities (including the goodwill arising from the final controller's acquisition of the merged party) of the merged party as recorded in the final controller's financial statements.

clp reference:3100/14.01.07 issued:2014-01-07 effective:2014-01-07

Issued: January 7 2014
Effective: as of date of issuance

Main contents: When enterprises subject to the same control merge and the merging party prepares the financial statements, where the merged party was acquired from a third party by the final controller in a past year, the reporting entity arising after the merger should be deemed to have continuously existed as a member of the integration from the time the final controller began to exercise control, and the relevant accounting treatment should be carried out based on the book value of the assets and liabilities (including the goodwill arising from the final controller's acquisition of the merged party) of the merged party as recorded in the final controller's financial statements.

clp reference:3100/14.01.07 issued:2014-01-07 effective:2014-01-07

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