Study On The Accounting Treatment Of Goodwill

Goodwill has been the focus of academic circles since a century ago.Since 2014,the business combination of the a-share market of china increasingly fierce and the combination cost has risen due to the assessed value increasing in the secondary market,so that a wider range of goodwill appeared.High reputation of initial recognition and subsequent measurement problem have a larger impact on the operating results of an enterprise.Goodwill accounting standards can standardize enterprises' treatment,providing a unified standard,so as to maintain the fair and justice of the market,guaranteeing the quality of accounting and the healthy development of capital market.In 2006,the Ministry of Finance issued a new "accounting standard for business enterprises",which adjusted significantly the goodwill accounting problems and improved the accounting treatment of goodwill to a certain extent,with the convergence of international policy.Although,there are still many problems to be solved.This article is based on the problems existing in the current accounting standards in our country,using normative research method to study the system of goodwill theory.At first,this paper studies on the essence of goodwill,the theoretical analysis of the concept of goodwill and elements,to expound the the essence view of goodwill,to determine the connotation of goodwill.Then the problems in accounting treatment are pointed out from the two aspects of initial recognition of goodwill and subsequent measurement.In terms of initial recognition,combining with the nature of goodwill analyze the flaws of the recognition and measurement principles of goodwill,under different way to trade for the formation of enterprise merger goodwill to analyze its measurement attributes and guidelines stipulated by the maneuverability,pointing out that the incompleteness of the rules of goodwill under the complex ownership structure integrity.In the follow-up measurement,combining impairment test elements to consider,from the determination of the impairment test unit,the determination of recoverable amount of impairment test group,specific aspects such as the regulation of the impairment test integrity pointed out defects of the elements of the goodwill impairment test,and analyze the defect of goodwill impairment test steps.Finally combining with the practice,the paper suggests better advices about accounting treatment of goodwill.