A Case Study On Goodwill Impairment Of Real Group

With the rapid development of the society and capital market,enterprises are faced with the challenge of transformation and upgrading.The government has introduced a series of measures to encourage enterprises to achieve the transformation goals,so that the number and scale of mergers and acquisitions in the capital market continue to expand.As an emerging cultural enterprise,new media enterprises have a huge development space in the industry prospect.With the policy regulating the industry market environment,some enterprises with the intention of transformation in the capital market have offered "olive branches" to new media enterprises.However,after the acquisition of new media enterprises,the risk of goodwill impairment of listed companies also increases.Due to the asset-light nature of the core advantages of new media industry,high goodwill is likely to occur in m&a.If the target of new media fails to meet the performance commitment standard during the performance commitment period and the high goodwill suffers impairment loss,it will be worse for the main merging enterprise.Therefore,what are the causes of high goodwill? What are the economic effects of huge goodwill impairment on listed companies? How should listed companies prevent goodwill impairment in the process of merger and acquisition? These problems have been the listed companies and users of accounting information and other related personnel attach great importance to the issue.This paper sorted out the research literature on goodwill impairment at home and abroad,elaborated the related concepts and theories of goodwill impairment,and selected the case study of emperor group's cross-industry merger and acquisition of new media enterprises in the flourishing times.Huang's group high premium m&a is firstly analyzed the cause of the sun to produce a high business reputation,then analysis the causes of huang's group a huge goodwill impairment,although huang's group in m&a scheme set up prevention measures of goodwill,including performance promised compensation and performance commitment period after the end of asset impairment test and so on,but these measures did not play the effective role,eventually appeared a huge goodwill that huang's group performance is impaired,finally choose to give up continue to hold the equity of prosperous time sun.Based on huang's group,this paper analyzes the causes of this behaviour,found that mergers and acquisitions of prosperous time when sun is overvalued,prosperous time sun outstanding performance commitments and goodwill impairment provision loophole which resulted in thehuge goodwill the huang's group together to give up the equity of prosperous time sun,due to the provision of high goodwill make adjusted net income was offset by huang's group performance.Through research and analysis,this paper suggests that the following measures can be taken to prevent goodwill impairment and eliminate the adverse impact of goodwill impairment on financial data.Firstly,the main merging party should fully understand the new media enterprise,pay attention to its ability of continuous operation and reasonably evaluate its asset value before the merger and acquisition.Secondly,performance commitment indicators should be designed rationally to prevent high performance commitment from boosting high valuation.Finally,it is suggested that enterprises should improve the accounting treatment of goodwill impairment and strengthen the disclosure of related information of goodwill impairment.