Application Of Goodwill Impairment Assessment For Financial Reporting

In recent years,the evaluation for the purpose of financial report in China has not been fully developed, due to reasons as system, cost and risk management. As the thriving trend of seeing the importance of fair value in the accounting industry, both in China and abroad, the demand for evaluation for the purpose of financial report has increased significantly. However, in China there are still many barriers and unresolved issues concerning use of evaluation for the purpose of financial report. Since the accounting standards has applied fair value to the asset impairment, it makes the asset impairment evaluation becomes the market with the max demand when comes to the evaluation for the purpose of financial report. Also, it is also noted that China’s accounting standard clearly states that there shall be no turn-back after assets impairment. Therefore it is extremely important to have a precise evaluation on the assets impairment calculations, which is tightly related to the follow-up measurement of assets and the quality of any relevant accounting information.I will be on the basis of existing cases, and with the normative and empirical research a combination of methods, and gradually expand the analysis. In this paper,the author firstly introduces basic information at home and abroad about valuation for financial reporting and asset impairment, on that basis the following theoretical and practical researches can be better understood by readers. In the theoretical research part, this paper describes the concepts of asset impairment, the relationship between accounting for impairment of assets and asset impairment assessment clears the scientific of assessment of impairment of assets and further analysis of the basic elements of the assessment of impairment of assets. Afterwards, the author does some further research on the differences between valuation for financial reporting and traditional valuation. Secondly, I analyze goodwill impairment test analysis theory that explaining the concept of goodwill impairment testing, evaluating ideas, and predict the future cash flows and fair value less costs of disposal of the net. In the practical research part, the author first chose a typical and more common assessing practical content, that goodwill impairment testing and evaluation, described its evaluation of ideas, methods and practices in the evaluation process; once again, with practice, I will introduce the true practice of rating agencies conducting impairment testing of goodwill----namely goodwill impairment test cases empirical analysis. detailed analysis of the overall evaluation process of the case and finally a summary of the case and review. In the final, the author describe we perform the assessing business for financial reporting needs to pay attention to some issues in practice.