A. The acquiring party should recognize the assets and liabilities obtained in the merger at their original carrying amounts in the merged entity

B. In a merger conducted through the issuance of equity securities, the difference between the recognized carrying amount of the net assets and the total par value of the issued shares should be recorded in capital reserves (capital premium or equity premium). If the balance of the capital reserves (capital premium or equity premium) is insufficient to offset, the corresponding amount should be deducted from surplus reserves and retained earnings

C. The direct expenses incurred by the merging party related to the business combination, including audit fees, valuation fees, and legal service fees paid for the merger, should be included in the merger costs at the time they are incurred

D. In a merger conducted through cash or non-cash assets, the difference between the recognized carrying amount of the net assets and the carrying amount of the cash or non-cash assets paid should adjust the capital reserves (capital premium or equity premium). If the balance of the capital reserves (capital premium or equity premium) is insufficient to offset, the corresponding amount should be deducted from surplus reserves and retained earnings