Research On The Precaution Of Acquisition Goodwill Impairment

In recent years,with the adjustment of industrial structure,traditional manufacturing has been transformed and upgraded.As a new cultural enterprise,the theme park industry has developed rapidly,and many well-known enterprises have entered this field.However,some theme park enterprises failed to fulfill their commitments during the commitment period,and the high goodwill formed by the high premium at the time of merger and acquisition led to the parent company having to calculate the increase in goodwill impairment losses.The thesis is based on the case of Oriental Times Media Co.acquiring shuimu Technology Co.,to analyze mergers and acquisitions to prevent the risk of goodwill impairment.Firstly,the research background of this paper is introduced and the research questions are put forward,and then the research significance and innovation points of this paper are put forward.Then it summarizes the research results and theoretical foundations of domestic and foreign scholars on the risk of goodwill impairment and prevention,and lays a foundation for case analysis.After the introduction of the case profile,this paper focuses on the specific performance of the goodwill impairment risk in the case and the impact and effect of the subsequent measurement of goodwill on the prevention of goodwill impairment risk.Taking the Oriental Times Media Co as an example,this paper first analyzes the reasons for the high value of goodwill in corporate mergers and acquisitions from the these aspects,market reaction,and summarizes the preventive factors of the risk of corporate mergers and acquisitions.In the M&A plan,although a series of measures to prevent the impairment of goodwill,such as installment payment and performance commitment compensation are set,there is still a risk of goodwill impairment.The case analysis section analyzes the impairment risk of the goodwill of the Oriental Times Media Co,and then compares the impact of the subsequent measurement methods of different goodwill on the financial statements,and finds that the system amortization method has the least impact on profits.Finally,combined with the particularity of the case,it proposes to select the appropriate target before the merger,rational valuation of the target,cautious evaluation of the target enterprise performance,and some suggestions for the revision of the goodwill accounting standard.