Research On The Economic Consequences Of Goodwill Accounting Of Listed Companies

The original purpose of revising corporate accounting standards in 2006 was to deepen the coordination between China and international accounting standards,formulate high-quality accounting standards to obtain high-quality accounting information,and more accurately reflect its economic essence.The new standard separates the recognition of goodwill from intangible assets,so as to define the goodwill in a purer manner;the follow-up measurement method is changed from the system amortization method to the impairment test method,and it is believed that the goodwill is not depreciated year by year or may be added value,in order to better measure goodwill.However,along with the revision of this policy,the appreciation rate of the underlying assets and the total amount of goodwill of the listed companies have increased dramatically.A large number of listed companies have issued announcements of goodwill impairment and are exposed to significant impairment risk of goodwill.Therefore,this article will use the revision of the goodwill accounting standards as the entry point to study the impact of goodwill accounting on the economic consequences of the business.Researches on the processing of goodwill accounting are confined to theoretical analysis at home and abroad.Most of them are empirical studies.The macroscopic nature of empirical research leads to in-depth analysis and meticulous analysis.This paper selects the case study method in order to more concretely and profoundly reflect the impact of change of goodwill accounting treatment on the operation of a company,from which it analyzes useful information to provide a solid foundation for the improvement of goodwill accounting standards.This article analyzes the chain effect that "influencing factors" induced "management motive","management motive" induced "economic effect",and "economic effect" induced "market effect".The theory of negative economic consequences is divided into three aspects: stock price manipulation,interest transfer,and earnings management.In the case study,the analysis of stock price manipulation was mainly based on the recognition of goodwill,impairment,and changes in the shareholding ratio of major shareholders.Earnings management is divided into two parts.One is to analyze the deferred provision for goodwill impairment based on the influence factors and management motivation.The second is to simulate the financial statements under different subsequent measurement models of goodwill and calculate financial indicators to analyze their economic consequences,especially to study the subjective nature of the impairment test on accrual ratios.The final market effect studies investors' reactions to events.This article expects to have practical significance for improving China's goodwill accounting standards and regulating the behavior of listed companies' earnings management.The results of the study indicate that,in the initial recognition of goodwill,goodwill is difficult to obtain due to the uncertainty of the nature of goodwill,and goodwill is often overestimated;in subsequent measurement of goodwill,the impairment test method gives the management excessive occupation.In judging the space,enterprises can manipulate the proportion of depreciation of goodwill and accrual timing,making the financial statements unable to truly reflect its operating level,and the market effect is also negative.Therefore,goodwill will become a means by which listed companies can manipulate stock prices and earnings.