Study On The Goodwill Confirmation And Measurement In J&R Optimum Energy Corp Conglomerate Merging Optimum Nano

Since 2014,mergers and acquisitions(M&A)expand their scales rapidly in our country.Leading to huge goodwill and goodwill impairment reserve.This phenomenon also causes problems like serious M&A premium,deceptive high value of goodwill,non-standard subsequent impairment tests,low quality information of goodwill in the M&A market of our country.From 2018 to 2019,a great number of listed companies of our country have been reported the losses of large goodwill impairments,which up to 4.61 billion Yuan and have influenced the health operation of the capital market.Frequent problems of large goodwill impairments also have aroused common concerns from accounting field,listed companies,market supervisors.some related studies of goodwill is also enriched day by day.Through the review of the related researches,this paper finds that the researches of the goodwill mainly focus on whether self-initiated goodwill should be recognized,subsequent measurement of goodwill should be marketed down or amortized.However,researches about the relationship between M&A's types and goodwill is few.The core of goodwill accounting issues is confirmation and measurement.The types of M&A's may influence the degree of information asymmetry in the process of M&A,the integration efficiency of Enterprises after M&A,etc.These impact factors will finally affect the confirmation measurement and disclosure of goodwill.This phenomenon is especially obvious in conglomerate M&A.Therefore,this paper selects the case of J&R Optimum Energy Corp merging Optimum Nano as the typical case of large goodwill impairment losses under the background of conglomerate M&A.Based on the previous studies,this paper discuss the case company from three levels: the initial confirmation and measurement of goodwill,the subsequent confirmation and measurement of goodwill and information disclosure.It finds that during the initial confirmation and measurement of goodwill,J&R Optimum Energy Corp was affected by market pro-cyclical effect,information asymmetry in conglomerate M&A and incomplete accounting criterion,which caused inaccurate valuation for M&A company and improper handling of contingent consideration.During the subsequent confirmation and measurement of goodwill,with the combined effect of the changes of macro environment,the failures of M&A integration,earning management and internal controls,business conditions have deteriorated rapidly and the authenticity of impairment test is questionable.During the process of goodwill information disclosure,due to the company hid information about goodwill impairment intentionally,insufficient external supervision and incomplete goodwill criterion,the goodwill information disclosure can't be in time and sufficiency.Combined with the reflection of the case,this paper puts forwards some subsequent measurement methods such as the efficiency of M&A integration,impairment or amortization.It also proposes some perspectives such as improving the frequency and amount of information disclosure.Meanwhile,in order to improve the confirmation and measurement of goodwill in our country,this paper proposes improvement suggestions in five aspects: improving financial due diligence,rationally confirming contingent consideration of M&A,strengthening the control inside the enterprises,improving criterion and supervision of goodwill.