A Study On The Mergers And Acquisitions Goodwill Of The Growth Enterprises Market Company H

Recently,China's market economy is becoming increasingly perfect and industrial competition is becoming increasingly fierce.It is difficult for enterprises to achieve jumping up type of development in a short period of time if they simply rely on their own strength to expand.People have generally accepted the development mode which the internal development is combined with the external development.Merger and reorganization among enterprises naturally becomes a fast channel for enterprises to transform their industrial structure and improve their economic strength.For this reason,stock market mergers and acquisitions are springing up,and GEM listed companies are also acquiring at a premium,among which there are many cases of high performant commitment,high valuation and high goodwill.So as a result of short-term market boom,but the high goodwill accompanying with the high premium will bring high pressure of impairment to enterprises.Once the acquired company's performance is not up to standard in the late,the loss of goodwill impairment will outnumber several times of the performance balance,which will cause the target company's asset impairment,even directly drag down the current performance of listed companies.Therefore,it is necessary for enterprises to properly deal with the huge amount of goodwill and its impairment when implementing their merger and acquisition strategies.Based on the above research background,in the research,we selected the representative company H as an object of case of study,aimed to analyses the reasons of huge decrease in value in the current GEM listed companies which have merged goodwill through the analysis of a little case.We would put forward some Suggestions and processing methods for GEM listed companies,which had implemented mergers and acquisitions of companies similar to the company H.In this paper firstly,the research background and significance were discussed,and the domestic and foreign literatures on goodwill research were sorted,and then the relevant core concepts to lay a theoretical foundation for this paper were defined too.Secondly,the case of the H company's merger with the S company was introduced to systematically analyze the problems related to the huge amount of goodwill and the later treatments of impairment of goodwill which appeared in the H company.It is found that unreasonable asset valuation,high performance commitment and the possibility of interest transfer between shareholders would make the initial confirmed amount of goodwill inaccurate.In addition,when confirming the impairment loss of goodwill,the H company has some problems,such as incomplete disclosure of impairment information,excessively subjective recognition of impairment provision of goodwill,earnings management using impairment of goodwill,etc.Finally,the corresponding policy implications were summarized according to the analysis: First,from the perspective of supervision,the regulatory authorities should strengthen the supervision of goodwill,severely punish violations and further improve the accounting standards for business enterprises.Second,from the perspective of the company,before merger and acquisition,we should carefully evaluate,rationally view performance commitment,establish perfect internal control system and standardize enterprise accounting rules and regulations.Third.from the perspective of other stakeholders,the supervisory role of evaluation institutions and audit institutions should be given full play;Investors should actively learn and improve their sense of self-protection.