M&A Goodwill Impairment Study

At present,in China's accounting standards,the valuation methods used in the merger and acquisition process are the asset method,the income method,and the market method.However,A-share listed companies have shown more preference for the income method in the valuation,but when the acquire adopts the income method,their evaluation results tend to be higher than their actual value.Furthermore,with the large-scale "thunderstorm" in the goodwill of many A-share listed companies after mergers and acquisitions,people began to question the evaluation results of A-share listed companies' evaluation of the target companies in M & A.In addition,the appearance of high premiums and high valuations in M & A plans also indicates that the company has not complied with corresponding accounting standards.Therefore,this article analyzes the market of A-share listed companies 'mergers and acquisitions,analyzes the amount of goodwill generated and the impairment of goodwill,and explains the unreasonable phenomenon of A-share listed companies' mergers and acquisitions.Taking Anjie Technology's acquisition of Weibo Precision as an example,it analyzes some of the economic consequences of the huge impairment of goodwill caused by mergers and acquisitions,and the reasons for the impairment of goodwill.Confirming the measurement provides some suggestions.The research results can enhance the rationality of the listed company's assessment of the overall value of the acquire to a certain extent,so that the listed company can complete the merger and acquisition activities more healthily,and it is more conducive to the company's long-term acquisition of the synergy caused by the merger and the realization of the maximum corporate value Into.Before introducing and analyzing the case,this article describes the research background and research significance related to this case,and summarizes the literature on the research background related to this case,which lays a certain theoretical basis for subsequent research.By sorting out the relationship between mergers and acquisitions and impairment of goodwill,and demonstrating the phenomenon of impairment of goodwill in mergers and acquisitions in the A-share market,the literature analysis method and case analysis method are used to analyze Anjie Technology.It uses a comparative research method to compare and analyze with other companies in the industry,and then finds out the real reason behind the high premium goodwill.At the same time,it gives objective evaluation to the good part of Anjie Technology's goodwill impairment measures.Finally,summarize the corresponding conclusions and put forward more reliable suggestions,in order to provide scientific suggestions for the initial measurement of goodwill generated by M & A activities in the capital market and subsequent reduction of impairment risks.The author mainly uses a case analysis method to analyze in detail the reasons for the significant impairment of goodwill in the merger and acquisition of Anjie Technology after the merger of Weibo Precision,and proposes measures to reduce the risk of goodwill impairment.Through case analysis,it aims to discover and promote the A-share listed companies to reduce the risk of merger goodwillimpairment in the process of merger.At the same time,it also has some significance for other listed companies.According to the research and analysis of Anjie Technology's case,the author found the following problems:(1)Confirmation of goodwill,because the merger and acquisition parties in the capital market generally use the income method when evaluating the value of the target enterprise,and the income method In the process of use,due to many unreasonable factors and the occurrence of related errors,high valuations and high premiums have occurred,leading to a higher initial recognition amount of goodwill;(2)After the acquisition of goodwill by Anjie Technology was reduced Analysis of value problems.When a merger and acquisition company conducts a merger and acquisition,the performance commitment plan proposed by the target company often does not take into account the actual performance capabilities of the target company,and does not well observe the relevant financial data of the target company before the merger.Or just staying at the financial data of the year of the merger and acquisition,resulting in blind optimism about the future development of the target company,to a certain extent,a "time bomb" is buried for the target company's failure to complete the performance commitment target.(3)Compared with other companies in the same industry,it is found that the related content of Anjie Technology's goodwill impairment information disclosure is incomplete.Based on the above analysis,the author puts forward the following suggestions:(1)Carefully choose an evaluation agency;(2)Prudent valuation and reasonable control of the merger and acquisition premium;(3)Optimize performance commitment mechanism;(4)Regulate the disclosure of corporate commercial impairment information.