Accounting Standard for Business Enterpris No.2—Long-term Equity Investments
Chapter 1 General Provisions
Article 1刘天华作品 This Standard is formulated in accordance with the “Accounting Standard for Business Enterpris—Basic Standard”董永和七仙女 for the purpo of prescribing the recognition and measurement of long-term equity investments and the disclosure of related information。
Article 2 The following items are dealt with under other appropriate Accounting Standards：
（a）translation of foreign currency long-term equity investments， which is dealt with under“Accounting Standard for Business Enterpris No.19—Foreign Currency Translation”。
（b）long-term equityinvestments not covered by this Standard， which are dealt with under “Accounting Standard for Business Enterpris No.22—Financial Instruments:Recognition and Measurement"。
教育大计教师为本Chapter 2 Initial Measurement
Article 3 The initial investment cost of a long-term equity investment acquired through a business combination shall be determined as follows:
（a）for a business combination involving enterpris under common control， if the consideration of thecombination is satisfied by paying cash, transfer of non-cash asts or assumption of liabilities, the initial investment cost of the long—term equity investment shall be the absorbing party’s share of the owners’ equity of the party being absorbed at combination date. The different between the initial investment cost and the carrying amount of cash paid， non-cash asts transferred and liabilities assumed shall be adjusted to capital rerve。 I作文我的家f the balance of capital rerve is not sufficient, any excess shall be adjusted to retained earnings。
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If the consideration of the combination is satisfied by the issue of equity curities， the initial investment cost of the long—term equity investment shall be the absorbing party’s share of the owners’ equity of the party being absorbed at combination date. T每一个今天he aggrega
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te face value of the shares issued shall be accounted for as sharecapital. The difference between the initial investment cost and the aggregate face value of the shares issued shall be adjusted to capital rerve。 If the balance of capital rerve is not sufficient， any excess shall be adjusted to retained earnings。
(b）for a business combination not involving enterpris under common control， the initial investment cost of the long-term equity investment acquired shall be the cost of acquisition determined in accordance with “Accounting Standard for Business Enterpris No。20-Business Combinations”.
Article 4 The initial investment cost of a long—term equity investment acquired otherwi than through a business combination shall be determined as follows:
（a）for a long-term equity investment acquired by paying cash, the initial investment cost shall be the actual purcha price has been paid. 2k显示器分辨率Initial investment cost also includes tho costs, taxes and other necessary expenditures directly attributable to the acquisition of the long—term equity investment.
（b）for a long-term equity investment acquired by the issue of equity curities， the initial investment cost shall be the fair value of the curities issued.
（c）for a long-term equity investment contributed by an investor， the initial investment cost shall be the value stipulated in the investment contract or agreement, except where the value stipulated in the contrct or agreement is not fair.
