Research On The Measurement Of Goodwill In The Merger And Acquisition Of IFLYTEC

At present,mergers and acquisitions in China’s A-share market are very active.According to the data,the number of mergers and acquisitions increased from 2531 in 2013 to 10299 in 2017,an increase of nearly 3 times.The total amount of mergers and acquisitions in 2013 to 2017 is more than15 trillion yuan,and it is also increasing.These data tell us that the era of mergers and acquisitions has come,and along with large-scale business mergers and acquisitions,a large number of mergers and acquisitions goodwill has emerged.Thus,the value and importance of goodwill can not be ignored.The measurement of goodwill has also become an unavoidable key issue in mergers and acquisitions of enterprises in various countries,and its impact on business results is increasing day by day.Therefore,the measurement of M&A goodwill has always been the focus of theoretical and practical circles.Based on the relevant theory of goodwill,this paper studies the measurement of goodwill in the merger and acquisition of iFLYTEC.Firstly,this paper introduces the development process,business model and financial situation of the company,and finds that the business income and total assets of the company have increased sharply in recent years due to frequent M&A activities,but the net profit has decreased.Then,by comparing with other companies in the same industry,this paper examines the status quo of the M&A activities and the recognition and measurement of the goodwill of the company.After that,we use SPSS software to study whether the goodwill of the company is related to its stock price and net profit.At the same time,we doubt that the huge goodwill generated in the merger and acquisition activities is unreasonable and may have been impaired.Subsequently,this paper will test the impairment of one of the companies with high goodwill and high merger cost in order to determine whether it is possible to use the right of free delay of goodwill impairment to whitewash financial profitability indicators or even raise stock prices.Finally,this paper finds that there are some problems in the measurement of goodwill in the mergers and acquisitions of iFLYTEC.Firstly,the overall trend of change in goodwill of iFLYTEC is unstable;secondly,it is common for iFLYTEC to confirm a huge amount of goodwill;thirdly,the motivation of mergers and acquisitions of HKUST is not simple;fourthly,the accuracy of initial recognition and subsequent measurement estimation of goodwill of iFLYTEC is not high;fifthly,The disclosureof goodwill evaluation information is imperfect.Then this paper puts forward some suggestions to improve the recognition and measurement of goodwill.Firstly,listed companies should establish a strict audit mechanism to rationally confirm the goodwill of mergers and acquisitions;secondly,they need to standardize the goodwill recognition and follow-up measurement system;thirdly,listed companies should improve the information disclosure system of mergers and acquisitions goodwill;fourthly,listed companies should steadily promote the expansion strategy.Finally,the conclusion of this study is put forward.