The Study Of Accounting For Goodwill And Economic Consequences Of The Company Under The GEM High Premiums Acquisition Background

"Enterprise Accounting Standards No.5, " promulgated in 2012:business combination under " common control,the acquirer of the acquiree at the time the assets acquired in a business combination are initially recognized,should have been purchased for the party, but in its financial statements,sufficiently unrecognized intangible assets identified and reasonable judgment."This GEM acquisition intangibles and goodwill status quo coincide. GEM companies because of its characteristic high-growth, asset-light, so that the value of intangible assets is particularly important. However, the high cost of intangible assets evaluation, follow-up measurements subject to amortization; contrast, recognition and measurement of goodwill low cost and are not amortized. Out of reducing assessment costs, and reduce the impact on the consideration of future profits, many companies choose to GEM sheet intangible assets was recorded as goodwill, which resulted in the acquisition of GEM companies high valuation phenomenon.Generate huge merger process evaluation showed that the value of goodwill in the accounting standards are not strictly enforced, which people have to mergers and acquisitions in the GEM high valuation phenomenon questioned. In this paper, under the 2010-2013 GEM same control sample acquisition, Now the company announcement, discusses the process of merger accounting treatment of goodwill, GEM companies found accounting irregularities issues; investigate the relationship between the subject’s high-market approach and the equity method of assessing results by the method of analysis of variance, correlation was found between the two; the case study analysis methods acquisition goodwill high economic consequences, found that high premium M&A shares will have a significant impact, but long-term high the amount of M&A goodwill failed to bring the expected benefits to the enterprise will also bring a lot of risk; Description GEM listed companies do not strictly enforce the accounting standards affect the accuracy of the accounting for goodwill and intangible quality of accounting information; also shows a high premium on acquisition behind the phenomenon there are problems. Conclusions complement and expand the study on the economic consequences of high-premium acquisitions, research findings show that the GEM merger goodwill and intangible assets of poor quality of accounting information, accounting standards are not strictly enforced, the subject of business valuation by the market impact of large despite the current acquisition can improve business performance, but the tech industry changes rapidly, so the risk assessment of high value-added rate is also large, the economic consequences are not necessarily able to withstand the test later. Finally, it recommends the development of accounting systems departments to improve disclosure system, which does not give an opportunity; regulatory departments to strengthen supervision, standardize the accounting treatment of GEM companies; When mergers and acquisitions, to clarify the motivation to do strategic planning; investors should have rational emotions. GEM to make more mature benign and healthy development.