Research On The Merger Of Listed Companies In China And Its Impairment

With the development of economic globalization,the marketization degree of listed companies in China is also deepening,and the number of domestic M&A companies is increasing,and the number of M&A transactions is also increasing rapidly.However,in today's economic situation,mergers and acquisitions of enterprises often have some problems.One of the typical problems is the large amount of goodwill generated in the process of merger and acquisition.This situation has both advantages and disadvantages for enterprises.On the one hand,the recognition of a large amount of goodwill can indicate that the target enterprise will have a higher earning capacity in the future and can generate some synergetic effect value with the main enterprise.But on the other hand,when the performance commitment of the acquired enterprise and the expected income of the enterprise are not up to the standard,the enterprise will conduct a lot of impairment of goodwill and affect the net profit of the enterprise.In general,the amount of consolidated goodwill is proportional to the impairment risk of the enterprise.In China,performance commitment and compensation agreement are often taken as the guarantee of high goodwill recognition.However,when the performance commitment of the acquired enterprise is not up to the standard,the enterprise will incur the consequence of large goodwill impairment.Firstly,this paper sorts out the literatures related to goodwill,and expounds the related concepts of consolidated goodwill and goodwill impairment.Secondly,through the analysis of the motivation for the acquisition of Anpu by GI Technology at a high premium,the financial indicators of GI Technology after the merger and the problems existing in GI Technology in dealing with the goodwill,this paper study the high premium of GI Technology's acquisition of Anpu is reasonable or not;the reason why GI Technology resold the Anpu and the impact of GI Technology accumulating a large amount of goodwill impairment on Anpu.Finally,the article puts forward relevant Suggestions:Firstly,in-depth study of goodwill accounting theory;Secondly,Strengthen the quality training of accounting practitioners and evaluators in China;Thirdly,improve China's capital and asset appraisal market;Fourthly,improve the accounting information disclosure system of goodwill and strengthen external supervision;Fifthly,reduce the accounting impairment test cost of goodwill;Sixthly,improve the internal system of the company and play the synergy of merger and acquisition.