Merge Light Assets Corporation Goodwill Measurement Improvement

In recent years,global enterprises have become increasingly fierce in cross-border competition,and the development trend of large-scale and diversified enterprises is inevitable.Regardless of domestic or foreign companies,the number of cases in which companies have expanded their business plans by means of corporate mergers and acquisitions has increased.In the context of economic globalization,the scale of China's M&A market has shown explosive growth from 2007 to 2017,from less than 70 billion in 2003 to over 2.5 trillion in 2017.In 2018,it ushered in the seventh wave of mergers and acquisitions in the world.Along with frequent mergers and acquisitions,the emergence of high-value goodwill has attracted the attention of the capital market.At the same time,under the current economic environment,the asset-light model has become the choice for the transformation and upgrading of many industries in China.The existing research divides China's asset-light transformation into two broad categories: one is commonly called “changing running shoes”: it does not change the original services of enterprises.In the field,the operation mode is transformed into asset-light;the second category is the complete transformation of “changing the runway”: exiting the original industry field and expanding the business to the asset-light industry with good market prospects.In order to more accurately understand the problems existing in the measurement of goodwill in the current light asset operation mode,and put forward specific suggestions for improvement,this paper analyzes in detail the particularity of the measurement of goodwill of light asset enterprises,and discusses the measurement of goodwill of such enterprises.The problems existing in the paper,aiming at the shortcomings of goodwill measurement under the light asset model,propose improvement measures for them.This paper takes case study as the research method and selects the case of Blue Focus merger and acquisition of Bojet Advertising to study the current situation of the measurement of goodwill under the asset-light acquisition in China and the risks it generates.First,it analyzes the current situation of China's asset-light industry.Secondly,according to the case of the 2013 Blue Focus M&A Bojet Advertising,the paper analyzes the three major problems of the measurement of the goodwill assets of China's asset-light companies and proposes improvement suggestions.Finally,the following conclusions are drawn: Firstly,for the asset-light industry,the core assets cannot be reflected in the table under the existing accounting standards.The article proposes to use the internal indicators or existing technologies to refine the elements of goodwill,thereby reducing the uncontrollable power of the company on goodwill and benefiting the enterprise.The management of assets and the effectiveness of market investment,Secondly,Because the intangible resources such as intellectual capital are not quantifiable,the subsequent measurement of goodwill brings shock to corporate profits and assets,in order to reduce its impact on enterprises,the article proposes to confirm the goodwill in stages,and link the confirmation period of goodwill with the performance commitment period,reduce the fluctuation of goodwill on the performance of enterprises and the motivation of earnings management.Thirdly,the current standard does not reflect the synergy effect.The article proposes that goodwill should reassess its value at the end of each year within the performance commitment period,thus reflecting that the synergy after the merger exceeds the situation expected by the company.Through the combing of the existing literature and the research of light assets companies,the article may have the following innovations: First,because the existing theoretical research does not have an absolute definition of the concept of light asset companies,the article attempts to use the commonality of multiple light asset companies.Exploring the characteristics of light asset enterprises;secondly,summarizing the development status of light asset operation mode,and discussing its application from domestic and foreign perspectives;third,by combining light asset model with goodwill measurement It finds the shortcomings in the measurement of goodwill in China and proposes improvements.