A Research On Goodwill Accounting Standards Of Light Asset Company

The party’s "18th National Party Congress" put forward, to support the development of strategic emerging industries, gradually withdraw from or out of low capacity of industry. In this context, China will usher in more and more industry consolidation through mergers and acquisitions during listed Companies. Using a range of goodwill accounting standards will be more widely. In many listed Companies, mainly the SME Board and ChiNext, light asset company in recent years has shown a big capital scale, merger and acquisition activity etc.. Due to the nature of light asset company, a higher premium often appear in enterprise merger process. In accordance with the provisions of the accounting standards for enterprises, high premium easily forms higher enterprise merger goodwill, and the problems related to the impairment of goodwill and testing period. Therefore, the attention and discussion on the application of goodwill accounting standards will be necessary during the light asset company.This paper firstly introduces the concept and present situation of light asset companies. It statistical analysis on the distribution and characteristics of the A shares market light asset companies, and pointed out that light asset company merger goodwill impairment characteristics.The relevant provisions on the goodwill and impairment method compare between international accounting standards, American accounting standards and China’s current accounting standards. Combined with the characteristics of light asset company merger goodwill, this paper find out the deficiency of goodwill and impairment accounting standards. including the large impact of goodwill, the future profitability of current accounting standards to reflect the influence of light asset company of goodwill, goodwill impairment factors during the matching degree is worth discussing, part of the company through the confirmation, the composite with ways to circumvent the goodwill impairment testing of goodwill to bring extra expenditure.The case of Star Technology company acquisition Fox network, describes and analyses the deficiency of combined goodwill and impairment. Finally, put forward suggestions about the accounting standards and proposed to regulatory proposals. In view of the existing problems of Chinese accounting standards, and finally puts forward suggestions to perfect the norms. The main points are including:proposing the internally generated goodwill and goodwill accounting, distinguishing the recommendations can be selectively goodwill impairment testing, goodwill advice on factor identification and suggestions to improve the goodwill treatment of acquisition. In addition, in the aspect of supervision, the merger and reorganization of financial advisory and asset appraisal institution has a significant impact on the equity pricing, therefore it proposed to strengthen the supervision, and improve the information disclosure requirements, disclosure of pricing based on objective for investors. It will also improve the quality of practitioners.