Optimization Of Goodwill Impairment Accounting Model Of Xiangyuan Culture

Since goodwill is not a tangible asset,its value cannot be directly measured.At present,there are many listed companies in China that measure the goodwill is not standardized,the provision for impairment of goodwill is arbitrary,and the disclosure of goodwill impairment is not sufficient.This makes goodwill an important means for many companies to manipulate their profits by virtue of their incomprehensibility.In recent years,the “black swan” incident in which the large amount of goodwill has been impaired has frequently appeared in the capital market,which has caused investors to worry about the “higher” of listed companies.Therefore,the accounting of the goodwill and its impairment of listed companies in China is increasingly concerned by many stakeholders such as investors,standard setters and regulators,and corporate management.In April 2017,the Financial Accounting Standards Board(FASB)issued a regulation on the reduction of goodwill impairment testing in the Accounting Standards Update.In December of the same year,the International Accounting Standards Board(IASB)initially decided to include “Headroom” in the factors considered in the goodwill impairment test to improve the impairment test model,which accelerated the change of the goodwill impairment accounting model.On this basis,this paper discusses the operational accounting model and its implementation path of the Updated Headroom Approach under the accounting standards system in China in the form of case analysis.The study found that the Updated Headroom Approach not only solves the problem that the book value of the asset group and the recoverable amount do not match,but also improves the timeliness of the enterprise's goodwill impairment confirmation.At the same time,the accounting model has not increased the workload of enterprises to implement goodwill impairment test.This study makes up for the shortcomings of the domestic research on the Headroom Approach of goodwill,and provides reference for the reform of China's future goodwill and its impairment accounting measurement model.