Research On The Goodwill Of China’s Film And Television Industry

The theoretical and practical circles have been continuously discussing about the problems of goodwill since the new accounting standards required the impairment of goodwill in 2006.This not only causes enterprises to face operational challenges,but also brings difficulties to the investment decisions of report users.In recent years,with the increase of goodwill in China’s film and television industry,it has made the problems of initial recognition,subsequent measurement and disclosure of goodwill.In view of the above situation,this paper focuses on goodwill,through detailed and specific case analysis,to study the problems of goodwill,and finally put forward a set of feasible solutions.Firstly,the domestic and foreign literature related to goodwill is sorted out and arrangement the relevant theoretical basis to provide support for the subsequent discussion.Secondly,in view of the goodwill of China’s film and television industry,this article analyzes the amount of goodwill and the amount of impairment of goodwill.It also analyzes the relationship between goodwill impairment and net profit.Summarizing the common problems of goodwill in China’s film and television industry.Afterwards,this article adheres to the principle of case selection,which is typical.Taking Huayi Brothers Group’s acquisition of Zhejiang Dongyang Meila Media Co.,Ltd.as an example,and analyze the problem of goodwill.They are:(1)In the initial recognition stage of goodwill,there are problems with performance commitments that drive up goodwill,the valuation method leading to falsely high goodwill,and star effects that drive up goodwill.(2)In the subsequent measurement stage of goodwill,there is a problem of not accruing in the previous period,and choosing to accrue a large amount of impairment in a subsequent year,and use the impairment of goodwill to conduct earnings management.(3)The disclosure of goodwill is unclear.Finally,the paper puts forward the countermeasures and methods:(1)To reduce the goodwill bubble by carefully treating performance commitments,improving assessment methods and expanding the content of intangible assets.(2)By refining the process of impairment testing and adding relevant regulatory provisions,the subsequent measurement of goodwill is more standardized.(3)By further refining the information of goodwill disclosure to solve the problem of insufficient information disclosure of goodwill.