Research On Goodwill Impairment Of Jinlong Electromechanical And Its Risk Prevention

In recent years,with the deepening reform of accounting standards related to mergers and acquisitions,there have been more mergers and acquisitions in China’s capital market,and accordingly,the accumulated total goodwill in the capital market has also increased year by year.Numerous scholars have found that in general,in order to realize resource integration,enterprises do not spare a high price to carry out business transformation and upgrading through mergers and acquisitions,and the high premium paid by enterprises is positively correlated with the impairment risk of goodwill in the later period.That is to say,the higher the accumulated goodwill,the higher the impairment risk will be.Moreover,when the performance commitment of the acquirer fails to meet the standard,the merger consideration paid by the acquirer in order to achieve the synergistic effect will not only fail to achieve the target of the merger,but also lead to the decline of corporate performance due to the huge impairment of goodwill,and even lead to corporate losses in severe cases.Therefore,it is necessary to carry out a systematic analysis on a series of impacts of goodwill impairment and its causes,and warn enterprises that they should be cautious in mergers and acquisitions,rationally treat performance commitments,and guard against goodwill impairment risks,which is conducive to ensuring the healthy development of enterprises and the capital market.In this paper,based on the present situation of the electronic components industry in our country enterprise goodwill,an overview of the goodwill and impairment of academic and practical significance,since the development of the theory of goodwill classification Outlines the theoretical achievements of scholars at home and abroad at present have already been made,and from the basic concept of goodwill,goodwill and performance commitment and related theory,with jinlong machinery dozens of mergers and acquisitions as the research object for case analysis.Firstly,it describes the generation of goodwill in the merger and acquisition of Jinlong Mechanical & Electrical.Secondly,it illustrates the importance of studying the incentive factors of goodwill impairment through the impact of goodwill impairment on the company.In addition,it analyzes the causes of huge goodwill impairment in the merger and acquisition from the initial measurement,subsequent measurement and earnings management.Finally,through the analysis of the incentive factors for the huge impairment of M&A goodwill,this paper suggests that listed companies should pay attention to the initiative to take measures to avoid the generation of huge goodwill in M&A,and can choose a scientific value evaluation method and design a reasonable performance commitment agreement and payment method to reduce the possibility of impairment risk.In the subsequent operation,attention should also be paid to the integration of the acquired company and incentive measures should be taken to the acquired company.Moreover,the regulatory department and the standard setting department should make joint efforts to guide enterprises to make reasonable mergers and acquisitions and standardize the follow-up measurement process of goodwill by strengthening supervision and improving and refining relevant standards.This article mainly analyzes the case,but the case in the capital markets for mergers and acquisitions of enterprises has certain representativeness in the case of the goodwill and impairment of related problems in the future for mergers and acquisitions in the enterprise may appear,so this article research on capital market other enterprise mergers and acquisitions will also have certain reference significance.