The Rescarch Of Consolidated Goodwill Accounting In The Chinese Enterprise

In this century, China witnesses a rapid economic development and an increasingly active capital market. On this basis, corporations grow and expand faster via M&A financed by the capital market, especially the M&A cases in chinese enterprises mounted up in recent years. The goodwill has claimed an ever-growing share of the acquisition price, and the goodwill accounting measurement has attached the close attention of the growing accounting information users. However, because of the late start of the goodwill accounting research and the incomplete standards in China, the goodwill accounting measurement is in a total disorder. In this paper, the author attempts to discuss this problem as part of the efforts to improve the standards and regulate the practice measurement.The author introduced and analyzed the goodwill measurement method and its existing problems in merger, consolidation and acquisition against the backdrop of the current accounting standards systematically by carding and reference from some scholars’research results about the reasons for the M&A goodwill generation and the goodwill measurement and combining with China’s regulation. And the paper also analyzed the causes of the generation of high goodwill and the measurement issues through the classical M&A cases of the listed companies, studying the measurement problems of M&A goodwill in China’s listed companies especially the companies in the chinese industry in an empirical research approach.The author found that owing to the lack of the clear and specific rules of the M&A goodwill measurement in China’s current accounting standards, the quoted company and its management manipulate the M&A goodwill measurement artificially standing at their self-interests. The concrete forms are as follow. First, controlling and choosing the purchase day artificially. That is to say, they choose the favorable dates as the purchase day of the enterprise merger. Second, choosing the merger cost. For instance, they try to choose a lower one to reduce the amount of consolidated goodwill. Third, choosing whether confirm the contingent consideration or not. The phenomena that they try not to confirm, try to adjust less or make a one-time confirmation of the contingent consideration at maturity are very common. Aiming at these phenomena, the author put forward the personal opinions and the improvement measures, hoping to make a positive difference in regulating the goodwill measurement.