The Influence Of The Following Measurement Method Of Huayi Brothers' Goodwill On The Company

As the optimization and adjustment of domestic industry,many companies are also aware of the significant historical opportunity,began to seek expansion and development,and between company buy-out boom,with the merger between companies,can produce significant amount of goodwill,the amount of goodwill is also from a humble beginning to a very important part in the financial statements.With accounting standards in line with international standards,China issued new accounting standards in 2006,it is noted that,in order to more formally reflect the value of goodwill and business conditions,decided to take subsequent impairment of goodwill.Review on the market a lot of goodwill damage incidents this year,listed companies large proportion plan carry goodwill,lead to profits,the company performance decline is serious,this directly hurt the storming the interests of investors,therefore,the current criteria of fair to reflect the value of the goodwill can effectively,cause the educational world widespread attention.Considering the background mentioned above,this paper focuses on the follow-up measurement method of goodwill,explores the formation and essence of goodwill,and explores the follow-up measurement method that is more in line with the essence of goodwill and the true market value.By referring to many previous research methods and conclusions,this paper summarizes the follow-up measurement method and related theories of goodwill.Secondly,the paper analyzes the operation status of Huayi brothers and the impact of goodwill impairment on the company.Then,it analyzes the impact of goodwill value,corporate performance and market value by using the asset impairment method and the systematic amortization method.At the same time,it makes empirical tests on two different measurement methods by using the t-test method of sample pairs.Finally,the paper analyzes the problems in the subsequent measurement of Huayi brothers' goodwill and puts forward some policy Suggestions.The main research conclusions of this paper are as follows:first,the use of amortization method will make the reduction of goodwill become gentle,no large amount of impairment of goodwill years,the asset-liability ratio will increase under the amortization method,long-term solvency will be weakened;If a large number of asset impairment provisions are made in the current year,the asset-liability ratio will decline under the amortization method and the long-term solvency will be improved.Second,the net asset liability ratio under the impairment method is less than the net asset liability ratio under the system amortization method.Different subsequent measurement methods of goodwill do not have a significant impact on the total asset-liability ratio of Huayi brothers,which may be due to the low proportion of the variable value of goodwill in the total assets of Huayi brothers.Third,the company's profitability performance will be smoother under the amortization method.The two subsequent measurement methods of goodwill tend to be consistent in the direction of loss of ROE.