A Study On Merger Goodwill And Its Impairment

With the development of market economy,enterprises are constantly exploring and improving technological innovation,at the same time,they are constantly expanding their scale,merging and integrating more resources conducive to their own development.Capital market providers provide sufficient financial support for enterprises to move smoothly on a bigger and stronger road,which is followed by round after round of merger upsurge.Goodwill,a rare accounting subject,quietly appears on the end-of-year statements of listed companies,which has become an important concern in the eyes of stakeholders and business managers.Since the introduction of the new accounting standards in 2006,people from all walks of life have been paying attention to whether the content of goodwill and its impairment can accurately reflect the indicators and business capabilities related to enterprises.In recent years,various mergers and acquisitions of enterprises have emerged in an endless stream.After mergers and acquisitions,there are many problems related to the high impairment of goodwill.These problems seriously affect the future development and business performance of enterprises.Individual enterprises will use the imperfection of the method of calculating the impairment of goodwill to carry out earnings management under the seemingly reasonable accounting treatment.All kinds of problems will cause immeasurable losses to the users of the statements and related stakeholders.It can be seen that how to accurately confirm the initial measurement and follow-up measurement of goodwill and other related issues,there is still much room for research.The purpose of this paper is to analyze and summarize the possible problems in goodwill recognition and subsequent measurement through JN Group merger case,by means of comparative analysis,statistical analysis and financial analysis.Firstly,this paper combs the relevant theoretical knowledge of goodwill at home and abroad,summarizes the essence of goodwill,the confirmation of goodwill,the problems of goodwill impairment and the reasons of goodwill impairment,which is used as a theoretical basis to assist this study.Secondly,the merger of JN Group is introduced as a case to analyze the initial measurement of merged goodwill and the accounting treatment of impairment of goodwill after the merger of JN Group.The economic essence of impairment of goodwill is emphatically analyzed,and some problems in the process of goodwill accounting treatment are found.Finally,through the process of discovering and solving problems,Chinese enterprises can choose the right way to develop their enterprises when they encounter the problems of goodwill arising from the merger of enterprises,and accurately and impartially measure the value of goodwill.At the end of this paper,some reasonable suggestions are put forward to solve some problems of goodwill accounting,which is of certain reference significance for optimizing the accounting treatment of merged goodwill.