Analysis And Research On The Provision Of Goodwill Impairment In Zeus Entertainment Mergers And Acquisitions

Goodwill arises from the premium that the valuation of the acquisition object exceeds the fair value of its net assets in the process of acquisition.Data statistics show that in 2018,871 listed companies raised a total amount of goodwill impairment of up to 166.794 billion yuan,accounting for 12.7% of the total amount of goodwill in that year,which attracted great attention from regulators,academia and the industry.According to the 2018 annual report of Dalian ZEUS Entertainment Co.,Ltd.,the actual loss of the company in 2018 was 7.15 billion yuan,803.52% higher than that of the previous year,of which 4.06 billion yuan was withdrawn for goodwill impairment,becoming the "loss king" of A-share in that year.Based on the above background,this paper uses the form of case analysis to analyze the motivation,accounting treatment and impact of the current large impairment of business combination goodwill.On the one hand,we hope to warn the enterprises to strengthen the prevention of relevant risks,which will serve as a wake-up call for the company’s management,investors and regulatory departments;on the other hand,we hope to analyze the current accounting treatment methods of goodwill impairment of business combination in China through the analysis of typical cases,further study the advantages and disadvantages of goodwill impairment test method and amortization method,and enrich the reform of relevant accounting policies Research,to provide some suggestions for the standard makers and regulators.After analysis,this paper believes that the reasons for the impairment of Tianshen entertainment goodwill are mainly reflected in three aspects: premium acquisition,gambling failure and earnings management motivation;in terms of treatment methods,the goodwill impairment test method is easy to be used as a toolfor earnings management by enterprises,and enrich the reform of relevant accounting policies Research is more stable;in terms of impact,the huge impairment of goodwill results in the decline of corporate performance.credit rating reduced.On the base of conclusions ahead,we give out sereval suggestions as follows:first,standardize the initial recognition of goodwill,standardize the assets evaluation of the subject of Merger & Acquisition,and clarify the recognition standard of identifiable net assets;second,adjust the subsequent measurement method of goodwill,and propose to adopt the combination of one measure systematic amortization and another measure impairment test;finally,strengthen internal and external supervision,and improve accounting information disclosure.