A Research On Measurement And Impairment Risk Of Enterprise M&A Goodwill-Case Study

Since 2007,Chinese enterprises have set off a wave of merger and acquisition boom,which has accumulated huge goodwill through high premium merger and acquisition and highlighted impairment risk.In recent years,with the expiration of performance commitment period,the phenomenon of"goodwill thunderstorm"that the large-scale value of goodwill detonates the performance of listed companies frequently occurs.How to prevent the impairment of goodwill in business combination has become the focus of accounting practice and theory.This paper aims to explore the risk of merger and acquisition impairment,the analysis of current goodwill in our country,in order to prevent goodwill bubble,reduce the risk of impairment.Firstly,this paper analyzes the differences and similarities in the recognition and measurement methods of consolidated goodwill among the standards of different countries,and makes a theoretical analysis on the changes of consolidated goodwill accounting after the implementation of the new accounting standards in China.Then,the current situation of goodwill recognition and impairment of a-share listed companies from 2007 to 2017 was analyzed by year and industry.Finally,take V&V stock as an example to analyze the significant changes in the company's financial statements since year 2013 to 2017,understand the merger and acquisition of the company and the impairment of goodwill,and find out the strategies to prevent the impairment of goodwill in the merger and reorganization of listed companies.Through the research,the conclusions drawn is that:at present,China's capital market is active in mergers and acquisitions,there is a huge risk of goodwill impairment bubble;Blind merger and acquisition of enterprises has caused dangers for goodwill impairment;Performance compensation agreement can reduce the adverse impact of goodwill impairment;China's goodwill disclosure is weak,there are earnings management behavior in the daily management activities.This paper suggests that the regulatory authorities should strengthen the supervision of the disclosure of goodwill information of listed companies and improve the quality of the disclosure of goodwill;Changing the subsequent measurement of goodwill from impairment method to gradual amortization of goodwill can mitigate the impact of impairment on performance.Enterprises should use the performance betting agreement carefully and strengthen the performance compensation agreement.Investors should rationally analyze to avoid risks.Mergers and acquisitions should be more rational,enterprises strengthen the main business to reduce the risk of goodwill impairment.