77外文原文

附件2：外文资料翻译原文Title: On the 'long-term equity investment' criteria forchanges in its level of return of listed companies Abstract：Comparison of the 'long-term equity investments'norms and 'investment' criteria, 'internationalnorms' of the similarities and differences, on thisbasis, further analysis of the 'long-term equityinvestments' accounting changes on the level ofearnings of listed companies in China. Keywords：'long-term equity investment' criteria for a comparativeanalysis of the level of returnThe Ministry of Finance on February 15, 2006 enactment of the 'Accounting Standards No. 2 - long-term equity investments' (hereinafter referred to as' long-term equity investments' criteria) and the January 1, 1999 since the implementation of the' Accounting Standards for Enterprises - Investment '(hereinafter referred to as' investment' criteria) are very different, these differences are manifested in what areas specifically? 'Long-term equity investments' norms and 'International Accounting Standards' the existence of differences? And 'long-term equity investments' accounting method change is the ability to affect China's listed companies, the level of return? These are practical profession and the sector is concerned, this paper on these issues accordingly.1, 'long-term equity investments' norms and 'investment' criteria for a comparative analysis of January 1, 1999 implementation of the 'investment' criteria from February 15, 2006 changed its name to 'long-term equity investment' criteria, short-term equity investments, long-short-term bond investments entirely by 'Accounting Standards for Enterprises No. 22 - Tools to identify and measurement 'provisions. With the 'investment' criteria for the provisions relating to long-term equity investments compared to 'long-term equity investment' criteria has undergone many changes, the main differences between the performance of specific aspects as follows: 1, the investment classification of contrast'Long-term equity investment' criteria for investment is divided into: (1) Investment companies have been able to invest in units in the control of long-term equity investments; (2) units of the invested enterprise to be invested with a common control or significant influence of long-term equityinvestments; (3 ) invested enterprises invest in units of being do not have a common control or significant influence, and there is no active market quotations, fair value can not be reliably measured long-term equity investments; (4) invested enterprises invested units do not have a common control or significant influence, and there are quotations in an active market, fair value can be reliably measured long-term equity investments. The 'investment' criteria for investment is divided into: short-term (stocks or bonds) investment, long-term equity investments and long-term bond investment [1] 194. Can be seen, 'long-term equity investment' criteria according to the specific circumstances of long-term equity investments and further made a detailed classification, which requires companies should be different types of long-term equity investment in the appropriate accounting methods were used. In this way, long-term equity investment in the reliability and relevance of accounting information greatly increased.2, the follow-up measurement method equity investment compared'Long-term equity investments' Guidelines: For the above (1), (3), two types of investment and subsequent measurement using the cost method, for paragraph (1) class-controlled long-term equity investments in the preparation of consolidated financial statements, in accordance with the equity method adjustments; above (2) in long-term equity investments using the equity method follow-up measurement; above (4) classes of long term equity investment by the 'Accounting Standards for Enterprises No. 22 - Financial Instruments Recognition and Measurement', respectively, a division of 'trading financial assets' or 'available for sale financial assets'. The 'investment' criteria for the relevant provisions are: (1) does not control and does not have a significant impact on long-term equity investments accounted for using the cost method; (2) control or have a significant impact on long-term equity investments accounted for using the equity method; (3) measured in accordance with the cost of short-term investments, dividends received write-down investment costs. [1] 2073, long-term equity investment in contrast to the initial measurement'Long-term equity investment' criteria require that: (1) new business from the merger of long-term equity investment in the determination of the initial investment cost, if the same under the control of mergers, according to owner's equity accounted share of book value; if the same non - under the control of mergers, it should be according to 'Accounting Standards for Enterprises No. 20 - Business Combinations' identified in the merger accounted for at cost, that is, an exchange transaction ?٠ realized merger, the merger cost of the purchase date the purchaser to obtain being purchased party control of the assets to pay, the occurrence or assumed liabilities and equity securities issued by the fair value; ?ڠexchange transactions through multiple-step to achieve a business combination, merger costs and the costs of each individual transaction; ?Buy side took place for the conduct of a business combination of the direct costsassociated should also be included in the cost of a business combination; ?ܠmerger contract or agreement that may affect the future of the cost of the merger agreement matters, the purchase date if the estimated future events are likely to occur and the right the amount of the cost impact of the merger can be reliably measured, the purchaser should be included in integration costs. (2) In addition to a business combination to form a long-term equity investment approach, other methods (such as cash payments, issuing equity securities, an investor, the exchange of non-monetary assets and debt restructuring, etc.) should be achieved in the fair value of long-term equity investment recorded. The 'investment' criteria with the relevant provisions are: the cost of long-term equity investments were determined according to the following three conditions: ?٠ to obtain long-term equity in cash when the actual payment of the full purchase price as the cost of investment, but does not include the payment of the price has been included in yet to receive cash dividends declared; ?ڠ to abandon the non-cash assets (excluding equity) achieved long-term equity, investment cost in order to give up non-cash assets to determine the book value; ?The original equity method accounting for long-term equity investments at cost method to change accounting, or change the original using the cost method of accounting under the equity method when the carrying value of the original investment as the investment cost. [1] 202-204 we can see from the provisions of the two criteria, 'investment' criteria for mergers not covered by the long-term equity investment approach.4, the equity method of long-term equity investment initial investment, overflow, recognition of discount contrast'Long-term equity investments' Guidelines: Long-term equity investment of the initial investment costs and investment in units should have been the fair value of identifiable net assets of a share of comparison, the current is greater than the latter, those who do not adjust the initial investment in long-term equity investments cost; present when the person is less than the latter, the difference should be included in current profit and loss, while adjusting the cost of long-term equity investments. Equity accounting for long-term equity investment equity investment is no longer recognized the difference. The 'investment' criteria with the relevant provisions are: long-term equity investment, initial investment costs and should have been invested unit share of the net book value of assets to compare the current were greater than the latter, the difference should be included in equity investment difference and amortized in future periods; the current person is less than the latter, the difference recognized as capital reserve. [1] 210 5, the equity method of long-term equity investments recognized investment income compared'Long-term equity investments' Guidelines: In accordance entitled to, or share of the investee's share of net profit or loss realized to confirm the long-term investment gains and losses and adjust the book value of equityinvestments. However, in order to obtain investment-invested enterprises should invest in unit when the fair value of identifiable assets, based on the investee's net profit adjusted for confirmation. The 'investment' criteria for the relevant provisions: In accordance entitled to, or share of the investee's share of net profit or loss realized to confirm the long-term investment gains and losses and adjust the book value of equity investments. [1] 2116, long-term equity investment impairment provision for comparison'Long-term equity investments' Guidelines: cost accounting method, in an active market does not offer fair value can not be reliably measured long-term equity investments, impairment should be in accordance with 'Accounting Standards for Enterprises No. 22 - Financial Instruments Recognition and Measurement' in that the processing, that is, according to the book value of the present value of the difference between the provision for impairment losses and impairment can not be reversed; other in accordance with 'Accounting Standards for Enterprises No. 8 - Impairment of assets' and that the processing has been provision for the reduction value may not be reconverted. The 'investment' criteria with the relevant provisions are: impairment can be reversed, but reversal of the amount shall not exceed the number of its accrual [1] 212.2, 'long-term equity investment criteria' and 'International Accounting Standards' A Comparative AnalysisThe international guidelines on investment are: 'International Accounting Standards No. 25 - Accounting for Investments',' International Accounting Standards No. 28 - Accounting for Investments of the joint venture '; the United Kingdom' Standard Accounting Practice Bulletin No. 1 -- Joint Venture Accounting 'and' Financial Reporting Standard No. 2 - A subsidiary of the accounting '; Canada's' Canadian Institute of Chartered Accountants Handbook' Cap 2010 s, 3050 s; Australia's' Australian Accounting Standard 1006 guidelines - joint ventures' and 'Australian Standard 1016 guidelines - Joint Venture Investment'; region 'Financial Accounting Standards No. 5 - a long-term equity investment accounting standards'; China, Hong Kong's' Standard Accounting Practice No. 10 - Joint Venture Accounting processing 'China's 'long-term equity investments' guidelines on the content of the basic converging International Financial Reporting Standards, where only the International Accounting Standards, for example, a comparative analysis of 'long-term equity investment guidelines' and 'International Accounting Standards' major differences. The main difference between the two lies in processing and impairment of investment in joint venture accounting methods. (1) Impairment of long-term equity investment deal with comparative analysis. China's long-term equity investment impairment related to the treatment, such as the aforementioned, I am not elaborated; while the 'International Accounting Standards No. 25 - Accounting for Investments' requirement is due to a permanent fall in long-term investment value of the impulse of its book value reduction shall be creditedto the income statement, when the value of the investment pick-up or down the reasons ceased to exist, has been offset against the carrying amount to be allocated [2] 85. (2) joint venture investment accounting methods comparison. 'Long-term equity investments' Guidelines on joint ventures should be accounted for using the equity method, while the 'International Accounting Standards No. 31 - Financial Reporting Interests in Joint Ventures' requirement is that for joint venture investments in order to proportionate consolidation method mainly but can also be accounted for using the equity method [2] 111.3, long-term equity investments accounting for changes in the level of earnings of listed companiesAs mentioned earlier, 'long-term equity investments' norms and 'investment' criteria relevant for long-term equity investment compared to the biggest change is that the cost of local law and the scope of equity method of accounting, as well as the equity method, the withdrawal of the equity investment difference and merger spreads and other subjects, and fully reflects the fair value of assets purchased. For the equity investment deal with the difference, 'long-term equity investments' norms and 'Guidelines No. 38 - the first implementation of the Enterprise Accounting Standards' the following specific requirements: ?٠pairs of related enterprises to obtain a result of a merger or acquisition of long-term equity investments, according to book value confirmed that the cost of long-term investments, the actual price paid and the book value of the difference directly recognized as current income. ?ڠpairs of non-associated enterprises to obtain a result of a merger or acquisition of long-term equity investments, according to the actual payment of the cost to confirm the initial price of long-term equity investments. ?the first execution, according to equity method accounting for long-term investment, for related enterprises, yet the difference between amortization and completion of equity investment should be in full write-off, and adjust the retained earnings to offset the difference between equity investment after the balance of long-term equity investments as the first book identification of the cost of meeting its day. ?ܠ For non-affiliated enterprises, there is the difference between equity investment credit should be offset the difference between the lender to adjust retained earnings, and to offset the difference between the lender after the book balance of long-term equity investments as the first identification of the cost of its day; there is a debit balance of the equity investment, long-term equity investment should be the first of its day-book balance of the cost of the identification. Can be seen, long-term equity investment accounting method changes the impact on listed companies is mainly reflected in the net assets and profits of two aspects of future periods.1, on net assets.For the first time implementation, the difference between affiliatedenterprises or non-affiliated enterprises invest in equity investments in both the credit balance of the difference between the net assets affected. In order to evaluate the long-term equity investments may change in accounting methods listed net assets of the degree of influence, we used (difference between the combined equity investment spread) / equity (referred to as EQ indicator) to reflect the criteria for adjusting the degree of influence of different companies. Passed, we found that a larger EQ indicator in the top 10 companies, EQ values are more than 30%, if the difference comes from equity investment associated with acquisitions, it will significantly reduce the company's net assets, specifically in the following table 1 [ 3].Table 1 the difference between equity investments and merger spreads of total shareholder's equity (EQ) the ratio of the top 10 companies Company Name equity Total (million) ?٠ merger spreads equity investment balance (million) ?ST Yun 49.47468 million 94.60%ST Fenghua 2,177,818,169 83.43%Zhangjiajie 2,315,814,286 61.69%ST Daying 66,873,501 52.35%ST Jia Paper 140,767,073 50.25%Star-US joint 5,877,729,326 49.89%G Chong Hing 2,875,112,056 41.93%G * ST Universal 3,976,015,055 37.86%G Jin cast 17,794,056,410 31.70%Baiyun Mountain A 72940 22032 30.21%Source: Wande information, synthesis of Ping An Securities2, the profits of future periods affected.After the abolition of the difference in the equity investment will no longer need to carry out the difference between equity investment amortization, thus affecting the net profit of the enterprises. Equity investment difference debit balance, the net profit will increase, whereas net profit will be reduced. In order to evaluate the long-term equity investment accounting method changes on future periods profits of listed companies, the degree of influence, we used (difference between the combined equity investment spread) / net profit (abbreviated EP indicators) to reflect the criteria for adjusting the degree of influence of different companies. By calculating, we find that a larger EP indicators in the top nine companies, EP values are greater than 800%, if we assume that the difference between the original equity investment or merger spread according to 20-year amortization, net change would be likely to reach more than 50% Of course, the impact of the specific situation of still life and whether or not specifically from its amortization associated with mergers and acquisitions, see Table 2 [3]. Table 2, the difference between equity investments and merger spreads of total pre-tax profit (EP) ratio of the company before the 9Company Name Pre-tax profit of Total (million) ?٠ merger spreads equityinvestment balance (million) ?Zhangjiajie 44,214,286 3232.13%Glory Pharmaceutical 207.96003 million 2886.34%G Gan of 317,760,512 1904.35%ST Fenghua 131,318,169 1383.78%Heng Group 317,441,965 in 1322.11%Sundiro A 9161 -86703 -946.36%Star-US Joint 314,329,326 933.06%G Wanjie 263,224,126 916.64%G Chong Hing 149,212,056 808.04%Source: Wande information, Ping An Securities Research InstituteFrom Table 1, Table 2 shows, long-term equity investment accounting method changes, the interests of the shareholders of these companies and net profit impact is relatively large. According to statistics, A-share listed companies, there are 571 listed companies, there is the difference between equity investments and merger spreads the balance of the total A-share companies more than 40%, of which two have a combined negative 92, if the implementation of new guidelines the difference between equity investment write-off and merger spreads out, then the company's future net profits will fall significantly during the period, while the remaining 479 listed companies in the future will be able to significantly increase net profit.In summary, the new 'long-term equity investments' guidelines have been significantly closer to International Financial Reporting Standards, though, 'the merger difference' and 'equity investments' adjustment will affect the level of most of the benefits listed, but long-term interests of the , the new requirements of the Code will allow the value of listed companies to be more fairly reflect the financial information is more comparable, more conducive to investment decision-making.。