A Follow-up Metrological Study On The Merger Goodwill Of Listed Companies

With the emergence of M&A wave,A-share market has accumulated a large number of merger goodwill.From 2017 to 2018,the impairment of goodwill has erupted again.Many co mpanies' performance has changed.Executives and large shareholders have left,and the rights and interests of small and medium shareholders have been damaged,which has caused the tur moil of China's capital market.Whether the current method of follow-up measurement of goo dwill is feasible,why there are no relevant disclosures in the financial statements of many list ed companies before the outbreak of the concentrated impairment of goodwill,where to go for a large number of goodwill,and how to choose the method of follow-up measurement of goo dwill are worth pondering.This paper chooses Palm Interest Technology as a case study,expounds the reasons for choosing a case for further research on the follow-up measurement of goodwill and the causes of merging goodwill,analyses the problems of poor quality of goodwill-related information disclosure in current follow-up measurement methods and earnings management by using the information disclosure of goodwill impairment by executives and major shareholders,and simulates the coexistence of straight-line amortization,amortization and impairment.The method carries out follow-up measurement of goodwill,and then compares the simulation results with the economic effects brought by the current follow-up treatment of goodwill of Palm Fun Technology,trying to find out a follow-up measurement method of goodwill suitable for the current market situation in China.Through this study,it is found that a large number of discretion in the current follow-up measurement methods affect the reliability,timeliness and relevance of goodwill-related finan cial accounting information,resulting in poor quality of goodwill-related information disclosu re,leading to earnings management behavior of enterprises and large-scale changes in corpora te performance.Although the straight-line amortization method is simple,the value of goodwi 11-related accounting information under the straight-line amortization is not high,and it is diffi cult to provide investors with decision-making-related information.When the speed of asset v alue decline does not match the expected speed of asset loss,there will be a gap between the h istorical cost and the real value of goodwill,which will affect the financial indicators.Therefor e,the straight-line amortization method and impairment test method have their own advantage s and disadvantages,and there are shortcomings in using either method alone,which can not i mprove the quality of accounting information disclosure.The coexistence of amortization and impairment can remove the inventory of merged goodwill of Listed Companies in a more mo derate way,alleviate the sharp decline of performance caused by a large amount of impairmen t of goodwill in our country,restrain listed companies from using impairment of goodwill for earnings management,improve the quality of accounting information disclosure,and help use rs of financial statements to improve relevant decisions.