Analysis And Research On Goodwill Accounting In Enterprise Merger

With the rapid development of the market economy in China,mergers and acquisitions(M&A)activities have become more and more active in recent years.In such an economic environment,enormous goodwill emerges as the times require and becomes an important point in a series of issues accompanying M&A activities.The essence of goodwill confirmation is the acquirer's expectation of the future profitability of the underlying assets.However,high goodwill caused by unreasonable valuation can pose a sword hanging over the enterprise.The higher the amount of goodwill,the higher the potential risk of impairment.Therefore,for acquirer enterprise,the main problem is how to reduce the negative impact of M&A goodwill impairment on corporate performance.Firstly,this paper generalizes the research background and significance of goodwill,expounds the basic theory of consolidated goodwill.Literature analysis used in this paper helps to understand the current status and issues existing in the research on goodwill in academic circles.This paper also conducts a comparative study of the relevant provisions on goodwill of current accounting standards at home and abroad,and tries to refer to foreign standards to find solutions to solve problems of goodwill accounting in China.Following that,this paper chooses the M&A case of Blue Focus and Bojet Advertising,introduces the basic situation of the M&A,systematically studies and analyses the initial confirmation and subsequent measurement of consolidated goodwill in the M&A case,and uses substantial data to illustrate the impact of consolidated goodwill on enterprise performance.And case analysis is conducive for us to identify problems possible in the same type of mergers and acquisitions.In addition,a systematic amortization measurement method is used to re-evaluate goodwill,and the impact of goodwill on corporate performance under this measurement model is studied.After analyzing the problems of goodwill accounting measurement in the case one by one,this paper finally makes both operational and policy suggestions to find out improvement measures to provide inspiration to other enterprises..Through above-mentioned analysis cantent and methods,we identified followingproblems existing in goodwill accounting measurement:(1)defects in valuation methods and inadequate understanding of intangible assets during the initial confirmation of goodwill;(3)incomplete impairment test method;(4)inadequate disclosure of goodwill information.In view of these problems,the following operational suggestions are provided:(1)distinguishing goodwill from intangible assets reasonably;(2)improving professionalism of the responsible people;(3)enhancing the supervision of enterprise merger.And the policy suggestions are provided as follows:(1)improving valuation methods;(2)improving the follow-up measurement methods of goodwill;(3)enhancing information disclosure and attaching importance to non-financial information.