Goodwill Follow-up Measurement Study

Since 2012,the total volume of mergers and acquisitions in China has continued to climb,and the phenomenon of high premium mergers and acquisitions has also been rising.At the same time,more and more listed companies' current performance is seriously dragged down due to large scale of goodwill impairment.The occurrence of such events is a reminder to the market:the risk of goodwill impairment is accumulating gradually.Therefore,how to carry on goodwill follow-up measurement and provide objective financial information is becoming more and more important.Based on the realistic background of large amount of goodwill impairment impairs listed companies' current performance,this article focus on the goodwill follow-up measurement level,uses impairment testing method,system amortization method,subtraction and amortization method to measure the goodwill of the case,compares and analyzes the characteristics of different follow-up measurements methods and the influence on financial information.This paper probes into the deficiencies and improvements to the current goodwill impairment testing method under the background of the large amount of goodwill,which provides reference for perfecting the goodwill follow-up measurement method.In this paper,we find that,under the method of impairment test,with the fluctuation of the economic situation,the enterprise performance fluctuation is also more obvious.In the context of the growing scale of goodwill and the increasing influence on financial statements,it may be more reasonable to use the subtraction and amortization method.It can amortize the large scale of goodwill annually and make the profit performance of the company more stable when the operating performance of the subsidiary company is facing sharp changes.The use of impairment and amortization in parallel is able to reflect the relevant information of goodwill follow-up measurement more comprehensively and better improve the quality of accounting information.At the same time,it is found that the deficiency of the listed companies' implementation of the impairment testing method is mainly manifested in the failure to disclose the relevant information of goodwill impairment and the earnings management by using goodwill impairment value.This paper proposes to improve the current goodwill measures in the following three aspects.A)To improve the operability of the current impairment testing method.B)To strengthen the disclosure and supervision of goodwill impairment.C)When faces huge amount of goodwill,the listed companies should consider the use of impairment and amortization in parallel as the follow-up measurement method of goodwill.