Research On Follow-up Measurement Of Goodwill Of Listed Companies In China

With the steady progress of the national macro-economy and the changing economic environment,China has issued a series of policies to encourage qualified enterprises to carry out industrial transformation,market-oriented mergers and acquisitions and industrial upgrading.In this context,vertical and horizontal integration through mergers and acquisitions of enterprises has become a favorite measure in the market.It has also become an effective measure for listed companies to enhance their industry share,enhance their strategic position,achieve strategic objectives,and achieve diversification,upstream and downstream integration.However,with the increase of M&A activities,corporate goodwill generated by M&A is also further expanded.Goodwill,as a hard-to-measure asset,has become an unstable factor in the financial statements of listed companies,bringing great uncertainty to investors and listed companies.This paper focuses on the impairment of goodwill in mergers and acquisitions of listed companies which are greatly affected by goodwill,and tries to provide reasonable suggestions for the improvement of accounting standards.The research on goodwill in China started late,and mostly on the basis of foreign research,there are many aspects about the nature and confirmation of goodwill.There are fewer controversial methods of goodwill impairment and the advantages and disadvantages of various methods.Moreover,there is no single standard for goodwill impairment in China.This paper combines the case of L company's goodwill impairment,through multi-angle analysis of differences,motives and reasons between enterprises and regulators on the situation of goodwill impairment,to supplement the research on the standard of goodwill impairment.This paper mainly uses case study method,normative research method and comparative study method to analyze the case of goodwill impairment in merger and acquisition of company A.Through case analysis and comparative study,the following conclusions are drawn:(1)the formulation of goodwill accounting standards in the United States takes more consideration of the economic background at that time,and helps to enhance the competitiveness of enterprises in M & A activities by formulating relevant standards that fit the development of enterprises in a specific period.(2)Changing the subsequent measurement method of goodwill from the impairment test method to the comprehensive amortization method will have a negative impact on the enterprise's net profit,financial indicators and the performance of the capital market.In the current economic environment,the impairment test method is a more appropriate choice.(3)the current impairment test method has some defects,such as unclear step requirements and strong subjectivity,which need to be further improved.Through the above analysis,this paper puts forward the following suggestions:(1)further refine the steps of the impairment method.(2)Third,strengthen the supervision of goodwill impairment test.The main contribution of this paper is to find out the advantages and disadvantages of various methods in the actual application process by comparing the historical evolution of various methods of goodwill follow-up measurement.Through the analysis of L company's large amount of depreciation of goodwill,we find the shortcomings of the current follow-up measurement methods.This paper makes a horizontal comparison of China's accounting standards,American accounting standards and international accounting standards,chooses the parts that play an important role in our country's practice to focus on the analysis,and chooses the practicability and advantages and disadvantages of the standards from the perspective of accounting objectives and accounting professional ethics.The disadvantage is that this paper only analyses the existence of a company,and whether the conclusion is universal still needs to be further explored and perfected.