Under The "Double Reduction" Policy,K12 Education Enterprise Goodwill Impairment Risk And Countermeasure Research

Since entering the new century,parents for children education problem more and more attention and education industry is developing rapidly.The state also encourages the next generation of education.In July 2010,the State Council issued the national medium and long-term education reform and development plan outline(2010-2020)",guide and encourage education.Under the guidance of the state,the education industry has ushered in a golden period of development,and many enterprises have entered the education industry through mergers and acquisitions,which has also caused the overall scale of goodwill in the education industry to surge.In July 2021,the State Council issued the Opinions on Further Reducing the Burden of Homework and Off-campus for Students in the Stage of Compulsory Education,requiring all localities to resolutely certify and implement it.As soon as this document was released,the entire education market was hit hard,and the stock prices of education companies plummeted.The policy has greatly restricted the business space of education enterprises,making the overcrowded extracurricular supplementary education institutions face the crisis of closing their doors in an instant.Many education enterprises have struggled to achieve their expected results,resulting in a significant decline in goodwill,and the entire education industry has faced the problem of goodwill impairment since 2021.First of all,this thesis starts with the development of goodwill in various industries in China,and analyzes the scale and impairment of goodwill in detail.At the same time,the goodwill of K12 enterprises in the education industry is analyzed.At the same time,the goodwill of K12 enterprises in the education industry is analyzed.Secondly,this thesis selects Doushen Education,which is most seriously affected by the "double reduction" policy in the K12 education industry,as the case object.Analyze how the "double reduction" policy caused the goodwill impairment of Doushen Education,and what impact did the goodwill impairment of Doushen Education have brought to itself.Finally,it puts forward countermeasures and suggestions on how Doushen Education can avoid large goodwill impairment in the follow-up.Through research,this thesis mainly draws the following conclusions:(1)The management of Doushen Education is overconfident and very optimistic about the prospects of education,and has adopted continuous mergers and acquisitions to realize the transformation to the education industry,laying the groundwork for a large impairment of goodwill in the future.(2)The "double reduction" policy mainly restricts the time of extracurricular tutoring and the objects of extracurricular tutoring,making it difficult for Doushen Education’s subsidiaries to complete the expected performance,resulting in goodwill impairment(3)Doushen Education’s ability to repay debts is reduced due to goodwill impairment,and its business risks and market risks increase.Based on the above analysis,this thesis concludes that companies should avoid continuous mergers and acquisitions and high-premium mergers and acquisitions due to blind confidence.Education enterprises in the K12 industry should seek transformation opportunities under the current "double reduction policy",make good use of their own advantageous capabilities and resources,and strive to transform.