Accounting treatment and impact of gambling agreement in Lianchuang Co., LTD

Abstract

With the full entry of China's capital market into the registration system, the merger and acquisition activities of listed companies will become more and more market-oriented. In order to reduce the transaction risk of the two parties, the listed companies will often attach a gambling agreement in the merger and acquisition business. This paper adopts the case study method, with Shandong Lianchuang Internet Media Co., Ltd. acquired Shanghai Pan Investment Network Technology Co., Ltd. as the research object, and the analysis of Lianchuang Company in 2017-2020 accounting treatment. Summing up the current business accounting standards related to the gambling agreement accounting treatment facing the dilemma. It can be seen from the accounting treatment of contingent consideration that there are still some misunderstandings in the listed companies' understanding of contingent consideration, which reflects the lack of professionalism in the accounting treatment regulations related to the gambling agreement.