Die with a smile > interpretation of the criteria one by one
Reading 13 to 02022.07.07 Jiangxi attention.
According to the Accounting Standards for Enterprises No.2-Long-term Equity Investment (Caishui [20 14] 14):
"The second chapter initial measurement
Article 5 For long-term equity investment formed by enterprise merger, the initial investment cost shall be determined in accordance with the following provisions:
Intermediary expenses such as audit, legal services, evaluation and consultation and other related management expenses incurred by the merging party or the purchaser for business combination shall be included in the current profit and loss when incurred.
Article 6 Except for the long-term equity investment formed by enterprise merger, the initial investment cost of the long-term equity investment obtained by other means shall be determined in accordance with the following provisions:
(1) For the long-term equity investment obtained by paying cash, the actual paid * * price is taken as the initial investment cost.
The initial investment cost includes expenses, taxes and other necessary expenses directly related to obtaining long-term equity investment. "