Is the cost of acquiring a company included in expenses or assets, and how should the acquired company keep accounts?

The cost of enterprise merger and acquisition should be included in the current profit and loss, that is, management expenses, rather than assets.

Borrow: management fee-agency fee or consulting fee, etc.

Credit: cash on hand/bank deposit.

The purchased company does not need to keep accounts, because the purchase of the company is an overall behavior and is accounted for by the equity method. Moreover, the transaction price is the evaluation value or the contract price, which has nothing to do with the accounts of the acquired company. The acquired company should be cancelled after the transaction. At the time of cancellation, the accounting firm will conduct liquidation audit, and the company will not make accounts or statements.