Research On The Problems And Causes Of The Impairment Of Goodwill Of Listed Companies In China

In recent years,due to the continuous expansion of the scale of capital market mergers and acquisitions,the in-depth development of the market economic system and the slowdown of the economic development,the listed enterprises have more and more mergers and acquisitions,and the amount of goodwill in the consolidated statements is also increasing.The huge increase in the amount of goodwill also brings about the huge impairment of goodwill.The listed companies carrying out the huge amount of goodwill provision will have a huge impact on both the enterprises themselves and the investors.Similarly,the provision of the huge amount of goodwill has attracted the attention of relevant regulatory authorities.Therefore,this paper focuses on the study of goodwill impairment,finds the problems in the process of goodwill impairment through the study of specific cases,and explores the specific reasons for the provision of goodwill residual impairment.This paper mainly adopts literature research method and case study method for research design.Firstly,through literature research,this paper sorts out the literature on the nature of goodwill,measurement of goodwill impairment and causes of goodwill impairment,laying a foundation for subsequent research.Secondly,this paper USES the case analysis,to select more outstanding lianjian photoelectric goodwill problem as the research object,the form in mergers and acquisitions goodwill and goodwill impairment analysis,found it in a series of problems in the process of goodwill,include: the process of the goodwill impairment is not clear,inadequate amount of goodwill and goodwill of incomplete information disclosure.Based on this problem,we obtained the reasons for goodwill impairment: the decline in the performance of the acquiring party could not fulfill the performance commitment,which led to the impairment of goodwill.Lianjian photoelectric used the large amount of goodwill impairment to conduct earnings management,so as to achieve the motivation of smooth profit and performance cleaning.In addition,the overvaluation of m&a may lead to the overvaluation of the recorded value of goodwill,thus affecting the subsequent impairment provision of goodwill.After analysis,this paper believes that in terms of initial measurement,the signing of performance commitment and the way of paying consideration in combination will make the confirmed amount of goodwill too high,thus leading to the impairment of goodwill.In addition,the acquired party's performance commitment is not completed,and there is no good synergistic effect among subsidiaries after the acquisition,which will also lead to a large impairment of goodwill.In addition,there are always reasons for earnings management motivation when goodwill impairment occurs.Major shareholders conduct earnings management for the purpose of performance smoothing and performance cleaning,leading to the impairment of goodwill.Such problems make enterprises use goodwill impairment as a tool to cover up problems such as poor development status of enterprises and unsatisfactory future profitability.Finally,some Suggestions are put forward for the problems and reasons in the goodwill impairment process.To solve the problems of unclear impairment process and imperfect information disclosure in the process of goodwill impairment,listed companies should improve the system of goodwill impairment information disclosure and make the process of goodwill impairment test clearer.In view of the excessive amount of goodwill impairment in the initial recognition,it is necessary to standardize the initial measurement of goodwill,increase the specific application of valuation technology,and strengthen the independent awareness of evaluation institutions and improve the relevant provisions of performance commitment.For the subsequent measurement of goodwill,it is necessary to pay attention to the continuous integration and synergy of m&a,not only the synergy effect between parent-subsidiary companies and subsidiaries,but also the direct synergy between direct financial information and non-financial information of parent-subsidiary companies.