Research On The Measurement Of Merger And Acquisition Goodwill Of Iflytek Limited By Share Ltd

As an asset that can't be separated from the company as a whole,goodwill is highly uncertain and cannot be reliably measured.It has always been concerned by accounting theory and practice.From the perspective of the theory of goodwill,the essence of goodwill is the excess profitability that the company has formed in the long-term business process.It represents the comprehensive operating capabilities that cannot be listed in the company's own accounting records.In mergers and acquisitions,the ability of the acquired party is the core of its operating capability.It is acquired by the acquiring party along with the fulfillment of the acquisition contract,and should continue to exist in subsequent operations.With the surging tide of mergers and acquisitions among Chinese enterprises,goodwill is an increasingly important part of the value evaluation of the acquired companies,and its measurement problems are particularly important.However,in the case of mergers and acquisitions in China's capital market in the past ten years,the frequency of high goodwill valuations and large-value goodwill impairments has increased,and has gradually become a trend,especially before and after the wave of mergers and acquisitions in 2013,this phenomenon is more prominent.The high recognition of goodwill and high impairment of goodwill that frequently appear in the market make us have to doubt that the initial measurement amount of goodwill may be overestimated,and the follow-up policy of goodwill impairment may not reflect the the real situation.This article analyzes the initial goodwill measurement and follow-up processing issues in the acquisition case of Guangdong Qiming Science and Technology Development Co.,Ltd.by IFLYTEK Co.,Ltd.Telecom Co.,Ltd.in 2013.In the research process,this article adopts a combination of literature induction method,case analysis method,and quantitative model method from the perspective of the excess profitable resources consistent with the nature of goodwill.With reference to previous research results,this article compares and analyzes the occurrence of the merger and acquisition case.The financial data of companies,markets,and industries before and after in-depth examination of the initial measurement of goodwill and subsequent impairment of goodwill in the merger and acquisition case examined the rationality of the accounting treatment of goodwill measurement from the perspective of external investors.The study found that in the initial measurement of mergers and acquisitions goodwill,the measurement of goodwill of Guangdong Qiming Science and Technology Development Co.,Ltd.in the case of this merger and acquisition may be overestimated.In follow-up measurement,the strategy of taking no impairment for this goodwill by IFLYTEK Co.,Ltd.Telecom Co.,Ltd.has not been supported in all dimensions of financial indicators.The above studies can provide decision-making references for external information users in the capital market from the perspective of the initial measurement of business reputation and subsequent measurement,and assist other companies in the decision-making of mergers and acquisitions reputation measurement.It also enriches the asset valuation theory to some extent.