How to replace the shares of the parent company and the subsidiary company when the subsidiary company acquires the parent company?

Under the new accounting standards system for enterprises (2006), the difference between the initial investment cost paid for purchasing the equity of the invested enterprise and the share of the book value of the net assets of the invested enterprise (hereinafter referred to as "the difference between the payment and the book value") is no longer simply amortized as the "long-term equity investment difference", but the reasons for the difference are dealt with separately.

"Payment and book difference" = "Payment and fair difference"+"Fair and book difference"

These include:

1, "payment and fair difference" refers to the difference between the initial investment cost paid for purchasing the equity of the invested enterprise and the fair value share of the identifiable net assets of the invested enterprise. When the former is greater than the latter, the long-term equity investment will not be adjusted or amortized; When the former is less than the latter, it is included in non-operating income, and then there is no amortization problem.

2 "Equity and book balance" refers to the difference between the fair value share of the identifiable net assets of the invested enterprise and the book value share of the net assets of the invested enterprise. This part of the difference is not a simple amortization, but should be treated in combination with the confirmation of investment income.

Disposal: Carry forward "equity and book balance" according to the consumption and disposal of the corresponding book assets and liabilities of the invested enterprise.

Thinking: The above-mentioned "equity and book difference" has not adjusted the book amount of the invested enterprise, so the net profit of the invested enterprise is the accounting result based on the book value. Therefore, it should be handled in the above way, and the "book net profit" should be adjusted to "fair net profit" measured on the basis of fair value.

For example:

Upon assessment, the book value of the fixed assets of the invested enterprise is 6,543,800 yuan, the assessed value is 6,543,800 yuan, and the assessed value-added ("fair and book balance") is 200,000 yuan. The fixed assets can still be used for 5 years. Assuming that the net profit of the invested enterprise in a certain year is 6,543,800,000 yuan, then:

The depreciation amount increased by the appreciation of fixed assets = 20/5 = 400,000 yuan.

Net profit measured at fair value =100–40 = 600,000 yuan.

The investment enterprise confirms the investment income based on the net profit, thus amortizing the "difference between fair value and book value" in disguise.

Of course, the above statement assumes that long-term equity investment is accounted by the "equity method". This problem does not exist under the "cost method" accounting. In addition, under the new standards, enterprises should use the "cost method" to account for the rights and interests of subsidiaries.