Research On The Influencing Factors Of Goodwill Impairment

With the rapid development of capital market mergers and acquisitions,the merger of listed companies has seen a sharp increase in the goodwill,and the subsequent impairment of goodwill has become increasingly prominent.The provision of large-value goodwill impairment provisions has affected the profits of listed companies.Small and medium shareholders have produced immeasurable losses.As of December 31,2018,there are still a large number of goodwill in the consolidated statements of listed companies.High reputation has a certain degree of impaired risk.Once the collective reputation is broken,it will seriously hurt investor confidence.Conducive to the stable development of the market.This paper uses the huge commercial reputation of Jianruiengeng as a research sample.Through the case analysis method,it explores the industrial policy,business model,goodwill valuation model,and the follow-up development of the company,and finds that the target company's performance is not “Achieving the standard” is the direct cause of the impairment of goodwill.The external policy environment changes and the defects of internal management and the mistakes of investment decisions lead to the impairment of the merger goodwill;the lack of cautiousness of asset appraisers and the boost of high performance commitments are caused.The main reason for the high premium payment is that “unreasonable premium payment” leads to the overestimation of goodwill as a hidden danger for subsequent goodwill impairment;the goodwill impairment test gives the management of the company greater discretion,and the earnings management constitutes goodwill.One of the influencing factors of impairment,at the same time,this paper finds that listed companies have the tendency to pass the risk of goodwill bubble impairment to small and medium shareholders.The paper finally analyzes the system amortization method and finds that the amortization method can force enterprises to cautiously confirm the cost of merger.And to some extent reduce the possibility of earnings management.