Hualu Beiner Goodwill Accounting Processing Case Study

In recent years,the rapid development of social economy,the competition between enterprises more and more fierce.In order to avoid being eliminated by the market,many enterprises began to adopt the method of consolidation and reorganization to integrate resources and gain competitive advantage.Mergers often produce merger goodwill,and in a sense,the size of the combined goodwill value represents the strength of the enterprise's ability to obtain excess profits in its future operations,so it is being valued more and more.At the end of 2018,the capital market burst out of the "black swan" incident,the huge goodwill impairment led to a number of listed companies performance "explosion",causing the academic and practical circles to re-open the great discussion on the accounting of goodwill.In November of the same year,the CSRC's "Accounting Regulatory Risk Tip No.8-Goodwill Impairment" issued again raised the issue of goodwill accounting to a new height,regulating goodwill accounting treatment and strengthening goodwill information disclosure has become an urgent problem in enterprise development.Using the case study method,taking Hualu Bainer's acquisition of Guangdong Blue Flame as an example,through reviewing the merger and acquisition process and the accounting treatment associated with it,this paper explores the underlying reasons for the huge goodwill impairment in 2018 and concludes that(1)there is a problem of excessive premium for the valuation of light asset companies by means of income;Finally,in view of the above problems,this paper puts forward some suggestions from the perspective of standard-setting,internal governance and external supervision.