Case Study On The Goodwill Impairment Generated By The Merger Of Yushun Electronics And Yashi Technology

In recent years,as the wave of M&A listed companies rising,the enterprises search for transformation and upgrading through the merger,acquisition and reorganization,which promotes and increases M&A goodwill confirmation.The total market value of goodwill is a rising tide with lifting all boats and is more and more big.The rapid growth of the goodwill value also brought a huge depreciation risk,causing the decline of the enterprise operating performance,but also damaged the interests of investors.Whether the current goodwill treatment can effectively and fairly reflect the nature of goodwill,there are still some problems in the recognition,measurement and disclosure of M&A goodwill at home and abroad.On the basis of previous studies,this paper firstly expounds the literature review related to goodwill through the literature research method,and sorts out the theoretical knowledge of the nature of goodwill,the relevant standards for the measurement of goodwill impairment and accounting treatment,which lays a foundation for the follow-up research.Secondly,this paper uses the case analysis by means of dealing with the whole process of combing the goodwill through the general situation of the two parties,the formation of goodwill and the whole process of processing,depending on the yushun electronic mergers and acquisitions as the research object.The study found that the initially recognized goodwill is artificially high,and it has included the reasons: the appraisal institution earnings method is optimistically used to predict target profit and enterprise distinguish the identifiable net assets deficiently,which lead to the asset valuation premium.Due to the large decline in the net profit of yashi technology in the later period and performance promises that cannot be fulfilled,the blind overvaluation of goodwill deviates from the essence,which provides a large space for subsequent impairment.Then,this paper mainly analyzes the impact of substantial drawing with goodwill impairment on the enterprises from the two dimensions of capital market response and financial status.The attitude of investors towards the impairment of huge goodwill is analyzed by using the event study method to reflect the performance of the capital market.In addition,four financial indicators are selected for further impact analysis.The study found that it explores the improvement of subsequent measurement methods of goodwill through the selection and analysis of systematic amortization method and impairment test method,so as to provide reference opinions.Finally,the view of case analysis was put forward the corresponding enlightenment and reference.The recommendation is to adopt the goodwill amortization and impairment method in the follow-up measuremented,whose purpose is to reduce the possibility of a "black hole" performance from the source.At the same time,taking the penalty method timely reflects the economic substance.For listed companies: standing in the enterprise strategic development point of view and making the fully research before merger and acquisition.In addition to external agencies: proposing standard asset valuations,perfecting the system of disclosure and strengthening the audit supervision enlightenment and reference.