A Study On The Impairment Of Goodwill In Xunxing Stock Purchase Value Link

Since the establishment of China’s stock market in the early 1990 s,great achievements have been made in both market scale and system construction,providing a broad space and convenience for enterprises to invest and finance.M & A has always been one of the most active areas in China’s stock market,and has gradually become a major means for listed companies to expand their fields and pursue their own transformation in the capital market.Many listed companies expand their industrial chain and business scale through extended M & A.But in the process of M & A,the most difficult asset to identify and deal with is "goodwill",which is used to measure the development ability of the company.As M & A becomes more and more frequent,the transaction amount involved becomes larger and larger,which makes the scale of goodwill continue to expand.For a long time,there has been a great controversy in the research of goodwill in the academic field,and most of the research focuses on accounting recognition and initial measurement,and few on the subsequent measurement of goodwill.The research on goodwill is carried out late in our country,whether in theory,standards and norms,or in practice,it is still in the primary stage,many are not perfect.After the revision of China’s accounting standards,the subsequent measurement of goodwill must be tested for impairment every year.This change will certainly affect the practical application of the subsequent measurement of goodwill.Behind the upsurge of M & A of listed companies,premium acquisition has become the norm.In order to achieve the purpose of M & a quickly and smoothly,listed companies often pay a high price far beyond the net asset scale of the object of acquisition,and then form a huge reputation of amazing scale,which has become a sharp edge hanging over the enterprise.Especially in recent years,because of the large amount of goodwill impairment,the company’s business performance plummeted,which makes the company’s business development in a dilemma,and also makes investors suffer serious losses.Therefore,based on the literature review of M & A,the essence of goodwill and the theory of goodwill impairment,this paper summarizes the theoretical basis of this paper.Taking Fujian xunxing zipper Technology Co.,Ltd.as an example,due to the failure of the acquired company to complete the agreement on gambling,the M & a company failed to withdraw the full amount of goodwill impairment,resulting in huge losses,summed up the adverse effects of goodwill impairment on enterprises,analyzed the causes of goodwill impairment,and then proposed to avoid "goodwill explosion" Suggestions and countermeasures.The main innovations of this paper are as follows: first,analyze the specific status quo of goodwill impairment of listed enterprises in China after the reform of standards comprehensively,obtain the overall characteristics of relevant data,and find out some widespread problems in goodwill impairment;second,analyze the real cases specifically,find out the main problems of goodwill impairment in the cases,analyze the internal reasons,and give corresponding countermeasures.The value of this paper is reflected in two aspects: first,it can enrich the existing theoretical research direction of goodwill impairment;second,goodwill impairment has a huge impact on the information related to the decision-making of statement users.After analyzing the problems and causes of goodwill impairment,it gives practical optimization opinions,so as to better improve the decision-making relevance of goodwill impairment information.On this basis,it puts forward suggestions: first,we should do a good job of research before the merger and acquisition;second,we should accurately select the evaluation methods to reasonably confirm the goodwill;third,we should strengthen the supervision of information disclosure;fourth,we should strengthen the supervision and law enforcement;fifth,we should strengthen the unique constraint effectiveness of the intermediary institutions;sixth,we should improve the follow-up measurement of the reputation,and use the combination of amortization and impairment.