The Research On The Goodwill Of Business Combination

The business combination is a more common transaction item in the modern economic society. In the enterprise mergence and acquisition’s process, the mergence goodwill, which is the most controversial, holds the duration to be longest and has not still had an accurate conclusion yet. The new accounting standards for enterprises was issued on February 15,2006 by the Ministry of Finance of our country that in the business combination under the non-identical control, when the mergence and acquisition cost is higher than that of the enterprise merged, the difference of the net assets sound value is confirmed to be the goodwill. The mergence and acquisition cost is lower than that of the enterprise merged, the difference of the net assets sound value enters directly current profit and loss, not confirmed negative goodwill. This criterion implement has been conducted in listed companies since January 1,2007. This article precisely launches the research based on some problems of the measurement on merge goodwill and the solution. The first part of this article is introductory remarks, which mainly introduces the research background, the significance, the research mentality and method. The second part summarizes the domestic and foreign literature and analyzes the mergence goodwill research present situation. The third part carries on the analysis to the goodwill elementary theory that the goodwill can create the indirect economic efficiency for the enterprise, which cannot exist independently and has the adhesiveness characteristic, close with enterprise’s tangible asset and enterprise’s environment, and it has measured, but not depositing. The fourth part mainly analyzes the way to deal with domestic and foreign merge goodwill processing. Our country tends to handle merge goodwill processing the same with the international accounting standards. Under the identical control’s business combination, there are no new properties, namely not confirming the goodwill; under the non-identical control’s merge, the purchase law should be used, thus the price differences are merged and the goodwill will be confirmed; The fifth part, taking China Eastern airline’s merging Shanghai airlines by absorbing its shares, analyzes the method of the merge goodwill in the business combination processing. The sixth part is mainly about existing problems and solution of present criterion mergence and the goodwill processing, the suggestion that the equity method should be canceled and uniform application of purchase method should be used in the business combination under the identical control, and the research feasibility of the sound value measurement used in the mergence goodwill processing. This article slosh bases on the present accounting standards of mergence and the goodwill processing in our country, analyzes its existing problems, and proposes that merge goodwill be measured by using the sound value. That is to say, the merge goodwill is equal to the subtraction of purchased enterprise value share and the net assets sound value share to be possible to identified, thus enhancing the mergence goodwill measurement accuracy.