Company A Goodwill Impairment Test Project Evaluation Related Studies

With the prosperity of China’s real economy and the increase of M & A cases, the valuation of goodwill has become a difficult problem for the enterprise to avoid. It is a trend to use the impairment test to measure the combined goodwill. China’s accounting standards for goodwill compared with the United States and other developed capitalist countries is not perfect. As goodwill is not identified, the goodwill there is a certain degree of difficulty in the operation of the practice of accounting and assets evaluation. For example:confirmation of goodwill relatively broad content, measurement method is not rigorous, impairment test is difficult and so on. Therefore, this requires that the enterprise must assess the goodwill of merger, financial report disclosed that matters related to merge goodwill and other are necessary detailed instructions, to prevent or even eliminate enterprise or individual use illegal means goodwill confirmation, measurement, impairment testing process to make harm to the country, enterprises and individual economic behavior.Goodwill is the direction of impairment testing of goodwill, due to the goodwill can not be independent of other assets to generate cash flow, need to be combined with asset or asset group impairment test. In practice. In general, the cutting method to test goodwill for impairment, in the future free cash flow discount model assessment group of assets value, through comparison of rights and interests of the asset group value and book value, and then judge whether goodwill impairment exists phenomenon. In this paper, by means of company a goodwill impairment assessment of the case, through the analysis of cutting difference method of goodwill and impairment testing model and process, further from the influence of the assessment methods, enterprises merger of enterprises, merger goodwill definition and so on several aspects carries on the analysis, pointed out that the case in the presence of assessment method is not consistent and changes in the value of assets and goodwill is "to" question, and analyzes the causes, and then from the view of these problems and the reasons, from the goodwill impairment testing model and process for improvement strategy, put forward specific measures for improvement.Through the analysis, it is concluded that our future in enterprise goodwill impairment testing should be take fully into account the above aspects, not only from the influence of the assessment methods, enterprises merger of enterprises, merger goodwill definition such as multiple aspects, replicability, comprehensive case analysis and dismiss all may have an impact on the conclusions of the assessment factors, can no longer follow the rash of traditional evaluation models based on group assets equity value greater than the combined, book value, come to the conclusion. We need a fully improve the fair value application level and quality, better of goodwill for recognition and measurement; by strengthening the consolidated goodwill in aspects of the supervision of information disclosure, to prevent the enterprise accountant and engaged in joint evaluation personnel fraud; by improving the assets assessment practitioners of professional knowledge and professional accomplishment, by analogy, to explore the most suitable be evaluated enterprise evaluation.