Standard Flexibility, Earnings Management And Goodwill Impairment Behavior Research

In 2006,China formulated new accounting standards,and changed the subsequent measurement method of goodwill from the system amortization method to the impairment test method,and implemented it on January 1,2007.With the increasing number of M&A activities in China's A-share market from 2014 to 2016,the risk of fulfilling performance commitments is also concentrated in 2017 and 2018.At present,China's concern about the impairment of goodwill has further heated up,making research on goodwill and goodwill impairment increasingly active in the theoretical and practical circles,especially in recent years,many listed companies have accrued a large amount of goodwill impairment losses.And it has a huge impact on the current performance.Based on this background,this paper selects the typical case of Jianrui Woeng's acquisition of Watmar,and uses this case study to explore the irrationality of goodwill accounting treatment and the motivation and impact of goodwill impairment behavior.The article mainly uses literature analysis,case analysis and descriptive statistical analysis to study and analyze.First of all,the article through the literature research method on the evolution of goodwill accounting standards,the research status of goodwill impairment and the relationship between goodwill impairment and earnings management are sorted out and analyzed.Secondly,using descriptive statistical analysis to analyze the current situation of the impairment of goodwill of listed companies in China,it is concluded that there is an extreme situation of goodwill impairment,and there is motive for earnings management.Using case analysis to analyze the unreasonable treatment of Jianruieng's goodwill Sexuality and analysis of the impairment of goodwill are due to the failure of the target performance of the M&A target and the management of the earnings management of the management.In addition,in order to reduce the cash,the major shareholder promotes the stock price increase through the high valuation of the merger,which further increases the subsequent goodwill impairment.risks of.Finally,in view of the current problems in the accounting treatment of goodwill,the corresponding solutions are proposed at the level of standards and supervision.It is considered that the subsequent measurement of goodwill can be transformed into a system of amortization and impairment test to better reflect the decision of goodwill.Usefulness.The innovation of this paper is that the current research on goodwill is limited to verifying the influencing factors and motivation of goodwill impairment through empirical analysis.There are few case studies on the issue of goodwill impairment,and there are few From the perspective of the flexibility of the standard,the motivation of earnings management of goodwill impairment behavior is discussed.This paper starts from the criterion flexibility of the relevant accounting standards of goodwill,discusses the irrationality of the case company's goodwill accounting treatment and the earnings management behavior of its management using the free choice provided by the standard flexibility.