Research On The Recognition And Measurement Of Goodwill In The Film And Television Media Industry

Since China’s reform and opening up,the market has become more active,the market economic system has been improving,capital has been accumulating,and the development of enterprises has become more dynamic.In this context,enterprises have sought for a larger business scale and a broader development prospect,and have chosen to expand the scope of business through mergers and acquisitions to achieve the goal of synergies.The number of enterprises with mergers behavior is growing,and the amount of mergers involved is also growing.The upsurge of mergers in China started in 2013.According to the data on the announcement day,the amount of mergers in 2014 increased by67.47% compared with that in 2013,and it also increased in the following years,reaching a peak in2016,with more than 6000.There is a premium in mergers,the higher the premium is,the higher the goodwill will be.In the context of mergers,many enterprises have generated a lot of goodwill due to mergers.the risk of goodwill impairment is around the enterprise.Sure enough,the mergers boom has just passed.In 2017 and 2018,many enterprises’ performance has declined,ushered in a storm of goodwill.Enterprises have accrued a large amount of goodwill impairment,and the decline of corporate profits has even become a negative value,which has a serious impact on enterprises.The face change of performance has caused stock price shocks,which has also caused heavy losses to investors and the capital market.As a result,the academic community is paying more and more attention to goodwill.The recognition,measurement and disclosure of goodwill has become a hot issue.This paper focuses on asset light companies.Asset light companies are more likely to form high goodwill in mergers and acquisitions because of their asset light characteristics.Huayi Brothers,as a representative of film and television asset light companies,studies the accounting treatment of goodwill,which has a good complementary role in the theoretical research of goodwill.This paper analyzes the reasons for the formation of Huayi Brothers’ goodwill,the problems in subsequent treatment,etc Start with,for thesubsequent processing of goodwill to find a more reasonable and effective way.2018 film and television industry set off a huge wave,goodwill this giant thunder in the capital market explosion,caused widespread concern,goodwill issues become the focus,the film and television industry because of its unique commercial characteristics,the prevalence of high-premium mergers and acquisitions to form a high goodwill situation,this article to Huayi Brothers incident as an analysis case,found that the film and television media industry in the recognition of goodwill,measurement,disclosure problems,resulting in excessive valuation,impairment test subjectivity and the current lack of regulations Based on the improvement method of exploring the follow-up treatment of goodwill,it puts forward suggestions from the three aspects of goodwill recognition,measurement and disclosure,reasonable use of performance commitment,careful evaluation of the target enterprises,perfect evaluation system,improve the impairment testing procedures,and provide reference for the formulation of policies by calculating and comparing the methods of goodwill follow-up and impairment,and strengthening information disclosure and related supervision.