Research On The Consolidation Goodwill Measurement Problem In Chang Cheng Animation Company

With the further advancement of the cultural system reform,cultural industry has entered a golden period of development.The emerging cultural industry represented by the animation and game industry has also ushered in unprecedented opportunities to develop.In 2013,there was a wave of mergers and acquisitions in the online game industry,and these mergers and acquisitions all exhibited a“high premium" feature.However,the high premium has raised the market’s question widely.This paper selects the case of Chang Cheng Animation’s acquisition of seven animation game industry companies to conduct case study.It is hoped that through the case analysis to explore the problem of consolidated goodwill recognition,impairment and disclosure.Then discussed the company’s choice of preference when it comes to the measurement of consolidated goodwill.This article discusses issues related to the recognition and impairment problem of the consolidated goodwill behind C company’s cross-industry M&A action.On the one hand,this article analyzes the process of formation of consolidated goodwill,and believes that the Company is too optimistic about the future expectations of the underlying company and raises the issue of M&A prices through gambling agreements.Therefore,there is an overestimation of the goodwill of the merger of 7 companies.On the other hand,this article analyzes Chang Cheng company’s business performance,profitability,and synergy after the acquisition.Whether or not excessive profits have been realized,and whether synergies have been achieved,and then judge that the company has an intention to delay and inadequate the provision for impairment of goodwill,and the goodwill impairment test has flowed into the form.At the same time,this article believes that the company’s disclosure of goodwill accounting information is not sufficient.Finally,this paper proposes to enhance the prudence of the company’s goodwill measurement,improve the company’s goodwill management,standardize the confirmation of goodwill and follow-up measurement processes,and improve the goodwill measurement and supervision environment,which has certain guiding significance.