The Cause Of The Merger Of Huge Goodwill And The Exploration Of Measurement Issues

Since the 21 st century,the world's science and technology and economy have developed rapidly.Under the influence of economic globalization,China,as the second largest economy in the world,has become increasingly active in the capital market.Many large companies often use M&A to expand their scale in the process of rapid growth.The proportion of goodwill generated in purchase price is increasing,and many companies have seen amazingly large amounts of goodwill.Therefore,the recognition and measurement of goodwill accounting has increasingly become a matter of close attention to accounting information users.The article described the results of research on the nature and content of goodwill at home and abroad,and the causes of the formation in large amounts of goodwill under abnormal circumstances and the exploration of the subsequent measurement of goodwill.The article combines the concept of excess returns with Jinli company acquiring Yuhan company as an example to analyze the problem of the formation of huge amounts of goodwill in business cases and the problem in subsequent measurement.The research perspectives include the impact of Performance Commitment Compensation to the merger costs,the effect of the mergers and acquisitions company relying on a single client,and the irrationality of information disclosure and goodwill impairment.In response to the problems found in the case,presenting suggestions for the improvement of the relevant standards for the initial measurement of goodwill and the impairment of goodwill in the current Chinese enterprise accounting standards.The suggestions include the establishment of independent standards of goodwill standards,changing the subsequent measurement of goodwill,enhancing the quality of goodwill disclosure,strengthening external supervision,etc.It has practical significance for the control of mergers and acquisitions of large amounts of goodwill and the improvement of goodwill accounting standards.