| Since 2006,China's accounting standards have changed the accounting follow-up measurement and treatment provisions on goodwill,converging to the international accounting standards,and changed into a regular impairment test on goodwill to consider whether it needs to be impaired to replace the original method of amortization of a certain amount to zero every year.Through the impairment test at least at the end of each year,the amount of impairment shall be calculated on the basis of certain professional judgment.Our country is in the background of the gloomy global economic development and strong downward pressure of domestic economy.In order to achieve transformation and upgrading and complete industrial integration,listed companies tend to actively choose merger and acquisition as a solution when facing difficulties.Under the guidance of the economic policies,there are more and more merger and acquisition behaviors in our market,this has become popular way for those enterprises to grow and transform,an extension and development mode as well as endogenous growth.From 2014 to 2016,the book goodwill of A-share listed companies in China has a huge growth,because of the increase of merger and acquisition activities,and some of them have confirmed the high goodwill.The results of performance commitments comes to their ends intensively in 2017 and 2018,ushering in a period of concentrated outbreak of goodwill impairment of listed companies.There are many kinds of cases,which show the irrationality of goodwill confirmation and subsequent measurement operation.This affects the profit level and accounting surplus of listed companies,as well as the stability of the whole market and investors' expectation.The concern of the market for the impairment of goodwill continues to heat up.As a result of frequent "thunderstorms" of A-share goodwill,many listed companies have formed black holes in their performance,which has brought huge fluctuations to the market.On this basis,this paper selects the case of the merger and acquisition of Wotema by Jianrui,analyzes the irrationality of goodwill in initial recognition and impairment treatment.Furthermore,through the analysis of this case,this paper hopes to deepen the discussion and reflection on the frequent goodwill thunder phenomenon in China in recent years.The main research method of this paper is case study,supplemented by literature study.First of all,it collects,reads and comments on the relevant theories and documents of goodwill research and goodwill standards,analyzes the mechanism of relevant theories,discusses the birth path of unreasonable goodwill accounting treatment.And through the analysis of Jianrui,the reason of its unreasonable goodwill accounting treatment mainly comes from the motivation of “cleaning up” and the motivation of information-based market manipulation.In addition,in this case,in order to achieve the purpose of precise reduction and arbitrage,large shareholders in the early period by means of high valuation to promote the rise of the company's share price,and with the time of impairment of goodwill in line with the current behavior of large shareholders,further increase the risk of subsequent impairment of goodwill.The results show that the initial measurement of goodwill is often overestimated due to the uncertainty of goodwill itself and the preference of market investment.In the follow-up measurement,impairment test gives managers too much room for professional judgment,and there is room for enterprises to manipulate the proportion and timing of impairment of goodwill,in order to achieve other purposes such as earnings management and information manipulation.Therefore,earnings management motivation is not excluded in the calculation of impairment of goodwill in China.Goodwill could be used as a tool for listed companies managements to manipulate financial information,which damages the interests of small and medium-sized investors,and it affects our market seriously. |
PDF Full Text Request