A Case Study Of Goodwill Impairment Test Evaluation For Financial Reporting Purposes

In recent years,it is common for a-share listed companies to "explode" their performance in the disclosure of annual report due to the large amount of impairment of goodwill.Moreover,with the issuance of order 8 of China Securities Regulatory Commission and a series of regulatory policies,goodwill impairment test business has been gradually paid attention to by insiders and outsiders in the asset appraisal industry.As a part of the evaluation business for the purpose of financial reporting,goodwill impairment test and evaluation business has a short history in China.Therefore,the industry does not have a very detailed specification for the development of this business.Therefore,standardizing the process of goodwill impairment test and evaluation and issuing the business norms of goodwill impairment test and evaluation play an important role in reducing the evaluation risk and improving the evaluation quality of the business.The innovation of this paper is to enrich the case of goodwill impairment assessment for the purpose of financial reporting.This paper selects the case of GJ Stock on the impairment test evaluation of medical goodwill of asset group SH as the study case,which can enrich the case base on the impairment test evaluation of goodwill to some extent.The risk of goodwill impairment test evaluation is summarized.At present,there are few studies on the risk of goodwill impairment test evaluation.This paper analyzes and summarizes the risk of goodwill impairment test evaluation from the perspective of internal and external risks.To a certain extent,it plays a positive role in reminding asset appraisal practitioners to be cautious in their work and improving their risk awareness.Firstly,on the basis of previous studies,this paper summarizes the theories involved in goodwill impairment test evaluation for the purpose of financial reporting.The first chapter is mainly composed of the background and significance of the topic,literature review,research content and methods and innovation points.The literature review is mainly from the financial report for the purpose of evaluation research,goodwill and goodwill impairment test evaluation research,asset evaluation risk of these parts to summarize.Extensive reference to domestic and foreign experts and scholars literature.The research methods are literature review,qualitative analysis and case analysis.The second chapter is the evaluation research for the purpose of the financial report,from the financial report for the purpose of the evaluation brief,for the purpose of the financial report for the purpose of the evaluation of the existing problems to summarize.At present,the existing problems in the evaluation for the purpose of financial report are mainly related to imperfect standards,differences between accounting standards and evaluation standards,difficulties and problems in the selection of evaluation methods,and prominent problems in the evaluation of goodwill impairment test.The third chapter mainly introduces the theory and method of goodwill impairment test.The third chapter briefly introduces goodwill based on my understanding,and then analyzes the reasons for goodwill impairment,mainly including high valuation,high premium merger and acquisition,underestimation of fair value of identifiable net assets,improper management after merger and acquisition,and accuracy of valuation of evaluation institutions and evaluators,which lead to goodwill impairment.The next part introduces the three types of valuation value in the goodwill impairment test: recoverable value,present value of expected future cash flow of assets and fair value minus net disposal cost.Then it introduces the selection of goodwill impairment test evaluation methods,and analyzes the applicability of each method in combination with the application of the current goodwill impairment test evaluation methods.Secondly,based on the extensive collection of relevant cases,this paper selects GJ shares as the case to analyze in detail the goodwill impairment test and evaluation business of SH medical related to GJ shares.The impairment test evaluation cases of SH medical goodwill asset group involved in GJ stock are introduced in detail from the aspects of evaluation procedures,selection of evaluation methods,analysis of evaluation data,etc.,and all contents of case calculation are introduced in a complete way.GJ Is an enterprise whose main business is the research and development of communication products.As the company actively explores the development of intelligent medical treatment,it acquired 53.33 shares of Jiangsu SH Medical.At that time,a performance commitment agreement was signed,which was not less than 10 million RMB in 2018,not less than 15 million RMB in 2019 and not less than 20 million RMB in 2020.This goodwill impairment test evaluates Jiangsu SH Medical as an asset group.The recoverable value of the final goodwill asset group is 107 million yuan,and the final withdrawal of goodwill impairment is 15.0973 million yuan.Finally,the conclusion of the paper and the prospect of goodwill impairment test evaluation business are discussed.It is hoped that the writing of this paper can provide new ideas and methods for the goodwill impairment test evaluation business,and provide reference for standardizing the practice standards of this business and reducing the risk of evaluation.