| Since 2018,goodwill impairment has occurred frequently in China’s capital market,and many listed companies have made large amount of provision for goodwill impairment in the past two years.Therefore,goodwill and goodwill impairment have become the focus of discussion in the current accounting field.But the impairment of goodwill is not an independent phenomenon of a company,which is usually accompanied by a variety of common problems.Therefore,this paper mainly uses case analysis research methods,and combines financial analysis,event study,regression analysis and other methods.Through the initial recognition of goodwill of Wanda film,a case company,and the follow-up process of impairment,this paper analyzes the problems existing in the recognition and impairment of goodwill of listed companies,as well as the economic effects.I hope that this paper can put forward good strategies for the supervision and steady development of the capital market,and strengthen the protection of small and medium-sized investors.Based on the above background,this paper mainly analyzes the following contents:(1)The initial confirmation process and existing problems of purchased goodwill formed by Wanda film in the process of merger and acquisition in 2015-2019.It is found that it is not appropriate to use the income method for value evaluation,the management’s subjective judgment has a great impact on the amount of goodwill impairment and the time point of withdrawal,the estimation of the recoverable amount of the asset group is not objective,the accumulation of various factors leads to a large base of subsequent withdrawal of goodwill impairment,and the related matters are not fully disclosed in the subsequent measurement;(2)The management has a strong motivation to use goodwill impairment for earnings management,and goodwill impairment is likely to be one of the means of Wanda film earnings management.(3)This paper analyzes the reaction of the capital market through the event analysis method,and draws the conclusion that the short-term and long-term reaction of Wanda film’s goodwill impairment in the capital market is negative;(4)Wanda film’s withdrawal of goodwill impairment has a great impact on its financial indicators,which shows that its solvency and profitability have declined to a low level,while its impact on operating capacity is relatively limited.Finally,this paper summarizes the common problems of listed companies from the two aspects of goodwill confirmation and follow-up treatment.And for the main body of listed companies,put forward some suggestions :(1)Regulators should strengthen the supervision of important trading parties and speed up the revision of relevant policies and standards according to market conditions;(2)Accounting standards for business enterprises should further refine the relevant provisions of asset group identification standard and discount rate determination.This paper proposes to adopt the subsequent measurement mode of goodwill with amortization and impairment in parallel;(3)When listed companies have M & A transactions,they should take full account of the changes in the internal and external environment of the enterprise in the coming years,so as to prevent the occurrence of excessive deviation of goodwill from the actual value.(4)Small and medium-sized investors should pay attention to the goodwill of enterprises,including the formation process of goodwill and whether there are signs of impairment. |
