Study On Accounting Treatment Of Merger Goodwill

With the continuous advancement of science and technology and the continuous maturation of the market economy,a new round of mergers and acquisitions boom has come.The proportion of the assets of the listed company's goodwill continues to increase.If the performance of the assets under M&A fails to meet expectations or the operating environment changes,in addition to the large impairment loss on goodwill,normal business operations will also be affected,and the potential risk of impairment of goodwill will be huge.Although the current accounting standards stipulate the initial recognition,follow-up measurement and disclosure of goodwill,due to the incomplete regulations,various problems existing in the accounting treatment of goodwill in practice have frequently occurred recently,which has aroused the attention of the accounting profession.This article takes Xinhua Medical's acquisition of the case of Chengdu Yingde in Chengdu as the research object,sorts out various problems existing in the accounting treatment of goodwill,and then summarizes the essence of goodwill and the accounting rules of goodwill on the basis that the accounting measurement technology cannot effectively solve the goodwill.The root cause of the initial confirmation and follow-up measurement problems is to try to combine management accounting with goodwill accounting,and to use the management accounting budget and performance assessment mechanism to complete the current goodwill recognition and measurement,and propose an improved goodwill accounting treatment.Research findings:On the one hand,as an enterprise's assets,goodwill has its own particularity and complexity.Therefore,the accounting treatment should take full account of its essence,with particular attention paid to the initial connection and follow-up confirmation..On the other hand,the management accounting budget and performance assessment can be used as the original vouchers for the initial recognition and subsequent confirmation of goodwill,and the initial recognition of the goodwill and subsequent accounting treatment can be unified,which improves the reliability and usefulness of the goodwill.Therefore,this paper proposes a method of goodwill accounting based on management accounting:In the valuation and pricing,the target is divided into asset groups,which are valued separately and their future operating performance is predicted;on the merger date,Mergers of goodwill will be allocated to each asset group or combination of asset groups through selective consideration,and at the same time,selective disclosure will be carried out to clarify the performance targets of each asset group.In the course of impairment testing,the difference between the actual performance of each asset group and the performance target will be judged.Whether the goodwill is impaired or not,and whether the goodwill should be accounted for as impaired depends on the performance evaluation system of the company.This study not only enriches the theoretical research on the accounting treatment of goodwill,but also proposes the application of management accounting to the accounting treatment of goodwill,which has certain practical reference significance for optimizing the accounting treatment of mergers and acquisitions of goodwill.