Research On The Choice Of Follow-up Accounting Treatment Of Goodwill

Since APB first used the amortization method in 1970 to carry out the subsequent measurement of goodwill,the subsequent accounting treatment of goodwill has been changing without any conclusion.Under the present impairment test,on one hand there are many enterprises have changed their performances because of the huge amount of goodwill impairment,on the other hand,there are also many companies never have any goodwill impairment,but both of them may not show the true value of goodwill.It is difficult for investors to judge the true value of goodwill through the impairment of goodwill.Based on this situation,this paper will study and analyze the existing goodwill accounting treatment.On the basis of reading a large number of literatures,this paper reviews the basic concepts of goodwill and the subsequent accounting treatment methods and simulates a virtual case.Then the results of simulation are analyzed and compared,and the similarities and differences between them are briefly explained.At the same time,this paper describes the statistics of goodwill in major countries and regions in recent years,carries out the qualitative and quantitative analysis,which further reflects the different characteristics of the impairment testing and amortization methods and the different effects on the goodwill of each country.Based on the results of virtual case and descriptive statistics,this paper redefines the amortization period of goodwill,and considers that the amortization method can not be limited to the straight-line method;through further combination of the analysis of the above steps to test the existing impairment,a feasible simplification and optimization method is proposed,and supplies and explains the point of time for additional impairment testing.Finally,according to the above content,this paper puts forward the view that the subsequent accounting treatment of goodwill should combined with the amortization method,trying to provide suggestions for subsequent goodwill accounting treatment.