A Study On The Impairment Of Goodwill In The Media Industry

Along with the decline in the macroeconomic situation,the gradual expiration of the performance commitment of mergers and acquisitions and reorganization,the goodwill formed by premium merger and acquisition is facing great impairment pressure.Until January 31,2019,a number of listed companies in China's capital market have released their 2018 earnings pre-reduction announcements,due to the provision for impairment of goodwill many companies are facing performance decline and even losses,the asset-light media industry is particularly prominent.Goodwill impairment is widely discussed in practice.How to reduce the negative impact on corporate performance and image caused by a large amount of impairment provision due to goodwill,has become a problem in mergers and acquisitions.The paper starts from the research of goodwill related literature,discuss the essence of goodwill,initial recognition and subsequent measurement of goodwill,as the theoretical basis of the case study.After that,it compares the accounting treatment of goodwill by IFRS,US GAAP and CAS.On the basis of theoretical basis and standards,the paper analyzes the current situation of goodwill in the media industry,it is pointed out that the media industry is facing the pressure of goodwill impairment,due to a large number of mergers and acquisitions.So,the paper select the Hua Wen Media as a case,carried out in detail.In Case analysis,the paper is based on the goodwill event formed by the premium of five mergers and acquisitions of Hua Wen Media,taking stock of the background information of Hua Wen Media,the formation and impairment of goodwill in M&A.The data are mainly from wind database and previous announcements of listed companies.Facing the current situation of substantial impairment of goodwill,the paper analyzes the causes of the impairment from the perspectives of performance commitment impairment test and enterprise management,and put forward targeted management Suggestions.In order to standardize enterprise mergers and acquisitions reorganization and measurement of goodwill put forward constructive Suggestions.The research results are helpful to improve the valuation of M&A,improve the performance commitment mechanism,optimize the subsequent measurement of goodwill,and improve the ability to coping with the impairment of goodwill,weakening goodwill impairment risk to promote the orderly conduct of mergers and acquisitions.