Subsequent Measurement Research On Business Merger Goodwill

Goodwill is one of the most difficult assets to identify and deal with.With the continuous development and improvement of the capital market in China,the merger and reorganization of enterprises is increasingly active,and the proportion of goodwill in the merger price is increasing.In 2018,China’s capital market frequently encountered the phenomenon of "thundering" of performance due to the provision of large amount of goodwill impairment,which is directly related to the recognition and subsequent measurement methods of China’s current M & A goodwill.Since 2007,the follow-up measurement of goodwill in China has been converging with the international accounting standards.The measurement method has changed from amortization method to impairment test method.However,in recent years,the capital market frequently shows the impairment of a large amount of goodwill,and the disadvantages of impairment test method gradually show up.The impairment of goodwill has become the performance black hole of listed companies,resulting in huge fluctuations in the performance of acquirers and undermining the normal market order.Based on the above background,this paper uses case analysis to study the subsequent measurement of goodwill,which is helpful to enrich the existing research results and has important theoretical and practical significance.Jianrui Woneng’s acquisition of Watema is the largest restructuring acquisition in the history of the growth enterprise market,with a premium of 4.6 times.It is recognized that the goodwill is more than 4.6 billion yuan,and the net profit of the year of acquisition has increased by 11 times.At the end of the second year after the acquisition,the impairment of the full amount of goodwill has caused huge fluctuations in performance,which has caused adverse effect to capital market and attracted the attention of the academic circles to this kind of measurement method intense discussion.This paper starts from the following measurement level of goodwill,discusses the limitations of different follow-up measurement methods in case enterprises,uses different follow-up measurement methods to deal with huge amounts of goodwill and makes comparative analysis,and proposes that using the parallel method of impairment and amortization for follow-up treatment can make goodwill measurement return to rationality.In this paper,we find that under the current single impairment test method,the standard elasticity creates conditions for the overestimation of goodwill,and the single amortization method before use may cover up the real profits of enterprises.Because of the defects of impairment test in subsequent measurement of goodwill,it will also affect the accuracy of initial recognition of goodwill and the authenticity of impairment disclosure.Therefore,in the current economic environment,it is more reasonable to adopt the method of impairment and amortization in parallel.It can not only reduce the scale of huge goodwill by fixed amortization every year,release the pressure of goodwill,but also make the business performance more stable when the business performance changes dramatically,reflect the relevant information of subsequent measurement of goodwill objectively and comprehensively,and improve the quality of accounting information better.