Analysis Of The Value Of Yili Company's Advertising Expense

In the highly competitive commodity information era,most companies are trying to increase the popularity of their products by various media advertisements promoting,so as to attract more consumers to buy the stuff produced by them.In view of the frequent and huge amount of advertising expenses in products promoting,there is no theoretical consensus on its economic consequences and accounting treatment methods.In addition,the current accounting standards do not provide specific regulations for the accounting treatment of advertising expenses.Therefore,it is of great theoretical and practical value to study the real economic nature of advertising expenses,which can truly reflect economic facts,improve the significance of decision-making on accounting information and ensure information users',especially investors' interests in a reasonable.This paper takes Yili shares as the research object,adopts case analysis method?literature research method and cross-discipline research method to analyze the purpose of huge advertising investment,the economic benefits,the difference in estimating the value of the company with different accounting methods and the impact of the advertising cost on the company's value from non-financial perspective.The thesis is divided into five chapters:The first chapter is the introduction which introduces the research background,research significance and literature review of the study.The second chapter mainly analyzes the nature of advertising expenses that continue to be expended,the deficiencies of accounting processing under current accounting standards and the assumption that they should be capitalized from the aspects of definition,types,current accounting treatment the confirmation of advertising costs.In the third chapter,taking Yili share as an example,the study firstly analyzes financial indicators existing before and after the starting time point of continuous huge advertising expenditure.Secondly,the thesis analyzes the influence of advertising costs on corporate financial indicators by comparing the value of the same financial indicators of Guangming Dairy and the average value of the industry at the same time.Finally,the study estimate the value of the company by applying the residual income pricing model,and study the differences by comparing the valuation results with the market value of the same period.The fourth chapter mainly studies the impact of the advertising expenses on the non-financial indicators of the company,and analyzes consumer's awareness of the brand and their consumption choices through questionnaires so as to verify the relationship between the advertising expenses and brand establishment.The fifth chapter is conclusion and the insufficiencies of the study.It summarizes the whole thesis and elaborates the shortcomings of the thesis.