A Case Study On The Accounting Treatment Of Goodwill Impairment Of Tian Shen Entertainment

With the arrival of M&A boom in 2014,enterprises have accumulated a lot of goodwill in the process of M&A.But in recent years,with the gradual consumption of M & A benefits and the downturn of capital market,the signs of goodwill impairment gradually appear.As there is a certain flexibility in the accounting treatment of goodwill impairment test,it is particularly common in recent years for enterprises with a large amount of goodwill accumulation in the early stage,which leads to a sudden change in their performance in the current period,which has a great impact on the stability of their own performance and the overall capital market.Based on this background,this paper selects Tianshen entertainment as the research object,analyzes the accounting treatment cases of goodwill impairment,studies the factors that lead to the earnings management behavior of goodwill impairment,and then discusses the accounting treatment of goodwill impairment.Through the development of goodwill related standards at home and abroad and the combing of goodwill related theories,this paper studies the source of goodwill formation and the related factors that lead to goodwill impairment,and studies the earnings management behavior in the process of goodwill impairment.By using the case study method,taking Tianshen entertainment as the research object,this paper collects and analyzes the relevant data to explore the irrationality of goodwill impairment,and draws the relevant conclusions:(1)For the emerging enterprises with light assets and high goodwill,the environment is complex,greatly affected by policies,fierce competition in the industry,and it is more likely to travel earnings management in the subsequent measurement of goodwill Behavior;(2)The response of investors,audit institutions and regulatory authorities to the subsequent measurement of goodwill,to some extent,plays a role in promoting the behavior of goodwill earnings management;(3)As for the choice of the subsequent measurement method of goodwill,the system amortization method can force enterprises to be more cautious in the initial recognition of goodwill to some extent,but the purpose of goodwill impairment test method is to The former international and domestic methods are generally applicable,which bring certain flexibility to the merger and acquisition and subsequent operation of enterprises,and more in line with the nature of goodwill changing with the market fluctuation;(4)The flexibility of goodwill criteria creates opportunities for earnings management of enterprises,and the impairment test method and related disclosure process should be improved from the perspective of criteria.The main innovation of this paper is to study the rationality of goodwill follow-up measurement from the perspective of earnings management,analyze the relevant influencing factors of goodwill follow-up measurement based on specific cases,and combine the response of the third party,such as investors,audit institutions and regulatory departments,to the existence of earnings management of goodwill impairment In order to make the accounting measurement and disclosure of goodwill more authentic and accurate,and reduce the possibility of using goodwill impairment for earnings management,this paper discusses the appropriateness of current impairment test as a follow-up measurement method of goodwill,and puts forward suggestions on how to improve the follow-up measurement and disclosure of goodwill from multiple perspectives.