Research On The Causes And Countermeasures Of Huge Amount Of Purchased Goodwill Impairments Of Broad-ocean Motor Co.,ltd.

With the rising of mergers and acquisitions and the deepening reform of accounting standards related to goodwill,people are increasingly concerned about the huge impairment of goodwill.In order to seek transformation and resource integration,listed companies do not hesitate to pay a high price,and the premium multiple is positively related to the risk of impairment of goodwill in the later period.The performance promise is not up to standard,and the merger consideration paid by the acquirer for synergies not only failed to generate corresponding returns,but also caused a loss in performance due to the drag on the impairment of goodwill.Therefore,sorting out the causes of the impairment of goodwill in mergers and acquisitions,and comprehensively analyzing the initial recognition of goodwill in mergers and acquisitions,and subsequent measurement,are conducive to ensuring the healthy development of mergers and acquisitions in the capital market,promoting benign mergers and acquisitions,and reviewing.high-premium mergers and acquisitions strictly.At the same time,alert enterprises to high-value goodwill mergers and acquisitions,take a rational view of performance commitments,regulate the impairment of goodwill,and help investors optimize their decisions.This article takes the huge amount of purchased goodwill impairments driven by Broad-ocean Motor Co.,ltd.acquisition of Shanghai Electric Power as the research object,and analyzes the causes of the large-scale depreciation of M&A goodwill from the initial measurement,subsequent measurement,and earnings management of the acquisition.Through the research and analysis of this paper,it is found that,in terms of the initial measurement of goodwill in mergers and acquisitions,because of overestimating future performance,underestimating the fair value of the identifiable net assets of the acquiree,and eager to transform in order to produce synergistic effects,the three factors leading to large amounts of goodwill form.In the subsequent impairment accrual,the asset group was unreasonably divided and the recoverable amount was questioned during the impairment process,which led to the error in the amount of impairment;due to the use of the impairment test method,Only conduct impairment test on M&A goodwill each year without amortizing it,resulting in a one-time huge impairment accrual,the slow elimination of goodwill bubbles,increasing the risk of huge goodwill impairment,causing the phenomenon of business performance to be dragged down due to merger and acquisition goodwill impairment.In terms of earnings management,the subjective judgment of management during the impairment process strengthened earnings management space,provided concealment opportunities through inadequate disclosure,and the management carried out equity pledged cash,which once again confirmed the company's earnings management motivation.Therefore,this article analyzes the cause of the huge impairment of the goodwill of the merger and acquisition,and draws relevant conclusions.It is recommended that companies such as Ocean Electric that have a huge impairment of the goodwill of the merger and acquisition,should pay attention to improve the initial measurement of the goodwill of the merger and acquisition,and increase the enterprise value Accurate valuation,fully identifying the fair value of the identifiable net assets of the acquiree,rationally looking at synergies and performance commitments;optimizing the subsequent impairment measurement of goodwill in mergers and acquisitions,ensuring the standardization of goodwill impairment testing procedures,and assisting the system amortization method Impairment tests were conducted to strengthen the professionalism of accountants.In terms of earnings management,in addition to improving the company's internal control system to supervise management,it is also hoped that external oversight agencies such as the securities market can increase supervision and punishment and regulate the disclosure of goodwill information on mergers and acquisitions.