| In recent years,China’s capital market set off a wave of mergers and acquisitions.There are more and more enterprises in mergers and acquisitions,and the scale of mergers and acquisitions continues to expand.At the same time,the share of goodwill in the M&A process also increased due to the increase in M&A prices.Mergers and acquisitions can help the company develop better and faster,but at the same time,it will also cause the risk of goodwill impairment due to the high goodwill generated during the merger and acquisition process.Goodwill has always been one of the most important issues in the capital market,and the potential risk of goodwill impairment cannot be underestimated.In order to follow the United States and integrate with the international standards,the accounting standards issued by China in 2006 changed the subsequent valuation of goodwill from the original amortization method to the impairment method.The theoretical and practical territory have been discussing the applicability and etc.Especially,as many listed companies accumulate large amounts of goodwill impairments in recent years,the company’s operating performance has fallen sharply,and the subsequent measurement method of goodwill is changed from impairment testing to amortization.Sales can prevent the occurrence of large-scale impairment losses and can reduce the possibility of earnings management by company executives.Based on the above background,this article focuses on the impairment of goodwill,analyzes the reasons for its formation and the economic consequences caused by cases,and tries to find more effective methods for the subsequent measurement of goodwill.On the basis of previous research,this article uses case study method,statistical analysis method and comparative analysis method,combined with asset impairment related theories,principal-agent theory and information asymmetry theory and economic consequences theory to carry out research.First,this article statistically analyzes the overall overview of goodwill of listed companies in China(including various sectors and industries),the provision of goodwill impairment losses,and the disclosure of goodwill impairment,and discusses the "storm" caused by the impairment of goodwill in China The cause of the problem.Secondly,this article takes the king of loss in 2018-Tianshen Entertainment Co.,Ltd.as an example,using case analysis methods to analyze the reasons for the large amount of goodwill impairment by Tianshen Entertainment Co.,Ltd.from one perspective: The premium mergers and acquisitions formed high goodwill,the performance of the acquired party did not meet expectations,and the management had a motive for earnings management to "take a big bath" of performance;and analyzed the one-time accrual of goodwill impairment to Tenjin Entertainment Economic consequences.Finally,introduce the amortization method,through restructuring the consolidated financial statements under the amortization method and compare it with the impairment method in multiple dimensions,explore the improvement of the subsequent measurement method of goodwill and prevent the risk of impairment of goodwill in China Make reference suggestions.The innovations of this paper lies in: One is to analyze the various reasons behind the impairment of goodwill and its economic consequences to the case enterprises in a multi-dimensional way around the real enterprise cases.The second is through simulation analysis of specific data from the perspective of the choice of amortization method and impairment method,the subsequent measurement method of goodwill is discussed. |
