Research On TS Entertainment Goodwill Impairment

With the continuous adjustment of the domestic industrial structure and the further advancement of the reform of the cultural system,the media sector is rapidly developing and growing.The development of the game industry is particularly rapid.The game industry is currently in a golden period of rapid development.In order to seek their own development and enhance their competitiveness,game companies continue to merge and reorganize.Corporate mergers and acquisitions have aggravated the recognition of merger and acquisition goodwill,and the book value of goodwill continues to accumulate.This phenomenon of high performance commitment,high valuation,and goodwill in the capital market has prevented investors’ interests from being protected.Whether the information provided in the financial statements is true and effective is doubtful.At the same time,huge amounts of goodwill will affect the company’s operating performance,and Enterprises also need to be alert to the risk of impairment of goodwill,otherwise,once a large amount of goodwill is impaired,it will have a huge impact on corporate profits,damage the interests of small and medium investors,and is not conducive to the stability of China’s capital market.The purpose of this article is to discuss the problems and the causes of the impairment of goodwill in corporate mergers and acquisitions,and make specific suggestions for the relevant reasons.This article mainly adopts literature research method and case analysis method.First of all,this article combs the literature on the nature of goodwill,the measurement of goodwill impairment and the causes of goodwill impairment from two perspectives,both foreign and domestic,through literature research methods.Second,this article uses case analysis,Selecting TS Entertainment,which has a prominent problem of goodwill impairment in the game industry,as the research object,analyzes the formation of goodwill and goodwill impairment in continuous mergers and acquisitions,and finds a series of TS Entertainment in the process of goodwill impairment.Problems,such as the unclear process of impairment of goodwill,insufficient provision of the amount of impairment of goodwill,and imperfect disclosure of information on the impairment of goodwill,and analysis of the causes of problems with goodwill impairment;again,for TS Entertainment in Reasons for problems in the process of impairment of goodwill,put forward generalized recommendations;Finally,it is concluded that mergers and acquisitions of light asset companies are prone to high goodwill,high goodwill may bring high risks,and avoid goodwill impairment risks The key is to make reasonable valuations and play a synergistic conclusion.