Research On The Impairment Of Goodwill In The Merger Of Great Wall Film And Television Company

In recent years,with the increase of M & A activities of listed companies,the amount of goodwill is increasing.On the one hand,large amount of goodwill means that the acquired enterprise has high profitability in the future,which is likely to bring excess earnings to the acquirer.On the other hand,if the acquired enterprise fails to complete the attached performance commitment agreement within the performance gambling period,the acquired enterprise will be forced to withdraw the impairment of goodwill.In recent years,there are more and more cases of turning profit into loss due to the impairment of goodwill.This paper selects the case of continuous high premium merger and acquisition of great wall film and television company as the resear ch object.On the one hand,through the analysis of the formation process of the impairment of great wall film and television company’s high value merger and acquisition goodwill,it finds out the motivation of great wall film and television company’s with drawing the impairment of large value goodwill,mainly for the continuous merger and acquisition strategy,earnings management motivation,the performance of the acquiree not reaching the expectation and the integration effect after merger and acquisition is unreasonable Think about four aspects.On the other hand,the paper studies the risk brought by the impairment of large amount of goodwill,and considers that the impairment of large amount of goodwill will increase the company’s debt repayment pressure and increase the volatility of net profit,which will have a great negative impact on the company.In view of the above discussion,this paper puts forward suggestions on how to reduce the risk of goodwill impairment from the aspects of enterprises and regulators: firstly,enterprises should formulate a relatively stable development strategy to avoid the business pressure and risk caused by their own blind and radical expansion;secondly,when goodwill is initially recognized,enterprises should strive to determine the initial amount of goodwill through various evaluations;and Make a reasonable performance compensation commitment agreement to prevent the excessive agreement from pushing up the goodwill valuation and leading to the impairment risk;finally,do a good job in the continuous integration after the merger and acquisition to prevent the goodwill impairment risk of the merged enterprise due to the inadequate integration.Regulators should also standardize the relevant measurement standards,and do a good job in supervision,and crack down on illegal phenomena.The application value of this paper lies in that it not only puts forward corresponding opinions on the impairment of goodwill in this case,but also provides case data for the subsequent study on the impairment of goodwill in the light assets industry.At the same time,it puts forward corr esponding opinions through the analysis of the causes and risks of the impairment of goodwill,so as to provide a perspective on how to reduce the risk of the impairment of goodwill,which has certain reference significance.