Research On Merger Goodwill In L Company Merger

This paper is inspired by the tide of mergers and acquisitions of Chinese enterprises.The author chooses to write articles about goodwill,which is also attracted by its particularity.I want to use accounting theory and case analysis to add a little strength to the accounting treatment of goodwill.The main research methods of this paper are case study,quantitative analysis and literature study.As for the research on goodwill,the author consulted relevant literature and periodicals and found that the most common analysis method used by most scholars was regression analysis,while few scholars combined theory with cases to analyze the subsequent measurement of goodwill.Firstly,this paper will elaborate the relevant theories of goodwill and make them reasonable.In the text,a typical case of enterprise merger and acquisition will be taken to analyze the causes and effects of high goodwill,and two subsequent measurement methods of goodwill will be used,namely systematic amortization method and impairment test method,for horizontal comparative analysis.By comparing the influences of the two measurement methods on the financial statement values of enterprises,this paper analyzes whether the current impairment test method is more suitable for the current follow-up measurement method,and then provides Suggestions and improvement methods for current general enterprises when they encounter high goodwill problems in m&a.Through case analysis,the following conclusions can be drawn:(1)misestimating of the value of goodwill will increase the risk of huge impairment of goodwill;(2)the impairment test method lags behind the systematic amortization method in dealing with the huge impairment of goodwill.Based on the above analysis,the author puts forward the following suggestions:(1)specify specific indicators and relevant procedures in the initial measurement of goodwill;(2)control measures related to the risk of huge goodwill impairment.