A Research On Goodwill Accounting Treatment Of Listed Companies

With the development of China's economy,the economic system is constantly improving,and the market competition is also intensifying.In order to survive in the competition,enterprises began to expand in an extensive way through massive mergers and acquisitions(M&A),so as to achieve transformation and upgrading.In addition,in recent years,the domestic policy environment of encouraging mergers and acquisitions and restructuring of enterprises and promoting the upgrading and adjustment of industrial structure has made the number and the amount of mergers and acquisitions increase day by day in China,accompanied by the rapid expansion of the scale of mergers and acquisitions goodwill,which will face serious risk of impairment.When the listed companies prepare for the impairment of goodwill,it will seriously affect the operating performance of listed companies.Especially in recent years,many listed companies' performance plunges caused by the high impairment of goodwill are common,which leads to chaos in the stock market.In view of the increasing impact of goodwill on listed companies and capital markets,it has attracted wide attention of the accounting profession.Firstly,this paper reviewed the relevant research literature in the field of merger goodwill,sorted out the development process of goodwill related theory of merger goodwill,and briefly summarized the related concepts,theories and regulations of merger goodwill,which lays a theoretical foundation for subsequent research and discussion.Secondly,it is observed that in recent years,most M&A cases in China belong to light assets M&A.There are characteristics of high valuation,high premium and high profits commitment in M&A.Therefore,this paper selects Liantronics M&A Time-sharing Media that conforms to the general characteristics as the object of case study,which conforms to the general characteristics.Through the analysis of the case of Liantronics M&A,it is found that the root cause of the huge goodwill is the overvaluation of the buyer's value during the merger and acquisition,which results in a higher premium,and the high performance commitment in the merger and acquisition will also lead to a higher premium to a certain extent.In addition,in the process of combing the time-sharing media of photoelectric mergers and acquisitions,we also find that the initial confirmation of goodwill of mergers and acquisitions is too blind,there is subjective arbitrariness in the subsequent measurement of impairment test,and there are some problems in the disclosure of goodwill information,such as incomplete disclosure information.Finally,some corresponding improvement measures are proposed for these problems,mainly to standardize the initial confirmation of merged goodwill,to improve the way of subsequent measurement,and to improve the relevant standards of goodwill information disclosure,and to refine some provisions of goodwill accounting treatment.