Research On Goodwill Impairment

Driven by factors such as optimizing the industrial structure in recent years,mergers and acquisitions have become an important means for enterprises to expand their scale and improve market competitiveness.The continuous increase in the number of mergers and acquisitions has led to an increasing proportion of corporate goodwill in financial statements.With the convergence of accounting standards in countries,China implemented new accounting standards in 2007,using the impairment test method for subsequent measurement of goodwill.However,in recent years,due to the provision of a large amount of goodwill impairment in the capital market,incidents of company performance have frequently occurred,which have harmed the interests of investors,and the theoretical community began to discuss more reasonable and effective methods to measure goodwill.In view of this,this article focuses on the impairment of goodwill and analyzes the problems,causes and economic consequences of goodwill impairment through specific cases,and explores the improvement of the subsequent measurement methods of goodwill.First,sort out the literature related to goodwill and goodwill impairment,summarize the evolution of goodwill accounting standards,and form the theoretical basis of this article.Second,a statistical analysis of China's A-share listed companies' mergers and acquisitions,goodwill,and overall goodwill impairment found that a small number of companies have accrued a large amount of goodwill impairment,which has a huge impact on performance;goodwill impairment issues exist in the industry differentiation,in which the issue of impairment of goodwill in the information technology industry is particularly prominent;the disclosure of information on impairment of goodwill has problems of different calibers and formalities.Again,taking the information technology company Palm Fun Technology as an example,through combing the formation of goodwill and the process of impairment,it is found that there are signs of impairment.No impairment of goodwill will be accrued,a one-time substantial accrual of goodwill impairment,information Incomplete disclosure.The reasons for accruing goodwill impairment mainly include that the initial recognition of goodwill is too high,which brings more room for impairment,the underlying performance is not as expected,and management's motivation for earnings management.By focusing on accumulating large amounts of goodwill impairment losses,Palm Fun Technology achieved goodwill clearing and major performance cleansing,and the stock price also bottomed out.In view of the problems of the impairment method,the reasonable amortization method and the PAH method are used to explore the reasonable and effective follow-up measurement method of goodwill,and higher requirements are imposed on regulatory agencies and certified public accountants,in order to make up for the lack of theoretical research to a certain extent.Provide a certain solution to the problem of goodwill impairment in practice.The innovation of this article lies in: first,focusing on specific cases,analyzing the influencing factors of goodwill impairment and the economic consequences brought about by it,and identifying the problem;Second,simulate the system of goodwill impairment under the amortization method and PAH method through specific data simulation Mention and propose effective solutions.