Research On Recognition And Impairment Of Listed Companies’ Goodwill

Since the implementation of China’s reform and opening up,the market has become more active,capital has been accumulating,and the living environment for enterprises has become more dynamic.Under such a background,enterprises have sought for larger operating scale and broader development prospects,and have chosen to expand their business scope and obtain synergies through mergers and acquisitions.With the increasing number of enterprises engaged in M&A,the amount of M&A involved is also increasing.Although the film and television industry started late in China,with the introduction of relevant policies to encourage the development of the film and television industry,the film and television industry ushered in a golden period of rapid development,triggering a wave of mergers and acquisitions.Since 2014,the number of mergers and acquisitions in the film and television industry has increased substantially.Due to the "asset-light" characteristics of the film and television industry,high premium mergers and acquisitions have become normal,and the financial risks brought by the film and television industry enterprises have drawn attention.Premiums generally exist in the process of mergers and acquisitions,and the higher the premium,the higher the goodwill.In the background of the boom in mergers and acquisitions,many enterprises have generated a large amount of goodwill due to mergers and acquisitions,and the risk of goodwill impairment surrounds the enterprises.As expected,the merger boom has just passed.In 2017 and 2018,the performance of many enterprises declined,and goodwill thunderbolt was ushered in.A large amount of goodwill impairment was withdrawn by enterprises,and corporate profits declined and even became negative,which had a serious impact on enterprises.In this way,the academic circle also pays more and more attention to the goodwill,and the recognition,measurement and disclosure of goodwill become the hot issues that the academic circle pays attention to.In this context,first of all,this paper takes Huayi Brothers,one of the giants in the film and television industry,as the entry point,explores the motivation of merger and acquisition from the perspectives of both the company and the artists,and deeply analyzes the real reasons behind the impairment of Huayi Brothers’ goodwill.Secondly,it extends to the film and television industry to explore the reasons for the collective explosion of goodwill in the film and television industry.Finally,this paper puts forward corresponding suggestions from three perspectives: initial recognition of goodwill,subsequent measurement and disclosure of goodwill information.In the context of the current Sino-US trade friction and the weakening of China’s macro economy,it is of profound reflection and reference significance for the stable development of the film and television industry and the whole capital market to deeply explore the root cause of the problem of goodwill impairment and lightning mine of Huayi Brothers,a film and television giant,as well as the preventive measures.