A Case Study Of The Goodwill Which Emerged From FL Company's Acquisition

As the rise-up of M&A that embarked by A-share listed companies since2013.The phenomenon of grand premium,abnormal profit promise and large amount of goodwill emerged rapidly and beyond control.Many cases of profit promise failure have been springing up until today as sudden change of the economics,which leads to great amount of goodwill impairment.This is a severe problem which deeply influences the A-share market and does great harm to investors.In this circumstance,the authority should pay great attention to the problem of goodwill and its' impairment with more regulations should be promoted.This dissertation is focusing on the confirmation and consequent measurement of goodwill with the analysis of the case of FL company's acquisition of TH company.The author refers several measures and solutions against the problems revealed by the analysis which may help to improve the accounting standard making.