The Research On Goodwill Impairment Of Blue Focus Company

In order to improve the accounting quality of goodwill better,the new accounting standards for enterprises in 2006 revised the relevant provisions on goodwill,making it clear that goodwill should be separately listed in the consolidated statements of enterprises and adjusted from regular amortization to annual impairment test.However,there are many factors affecting the measurement of goodwill.Both the measurement basis and the initial recognition of goodwill and the subsequent impairment test have high uncertainty.This uncertainty makes it possible for listed companies to conduct enterprise value management and control enterprise performance through goodwill.After going public,Blue Focus Company has successfully carried out 24 business mergers under different control,successfully realized the rapid growth of enterprise scale,but also formed a huge amount of goodwill.And the ratio of the amount of goodwill to the net asset was as high as 84.56%,containing a huge impairment risk.On the basis of goodwill research at home and abroad,this paper analyzes the goodwill impairment of Blue Focus Company,and discusses the influence of overconfidence of management on goodwill in the merger and acquisition.The results show that the actual controller was overconfident and it was fully verified in the drawer agreement incident of Xizang Bojie.Specifically,the management overestimated its own integration ability,which was finally reflected in the subsequent performance of Xizang Bojie.Moreover,it is found that the overconfidence of the actual controller of blue cursor company may be due to the successful experience of mergers and acquisitions after the listing in 2010,but it also leads to the result of high valuation,high goodwill and low performance of mergers and acquisitions in 2012-2014.Combined with the accounting standards,this paper discusses the connotation of goodwill,and finds that the following three reasons lead to the insufficient reliability of the accounting results of goodwill: the accounting basis of goodwill is not clear,the initial recognition of goodwill can be changed,and the test method of goodwill can be manipulated.In addition,under the motivation of market value management and pledge risk management,the operation of little impairment of goodwill of Blue Focus Company has the signs of earnings management,which is not to reflect the intrinsic true value of goodwill,making the usefulness of goodwill information greatly reduced.In view of the above analysis,this paper suggests that Blue Focus Company should restrain the drawer agreement behavior,improve the internal control system,and strengthen the internal and external audit linkage.This paper holds that the goodwill connotation is the core competence of on the day of the merger,and should be further optimized initial value evaluation process and impairment test method,so as to reduce the dependence on the judgment of management and limit the scope of application of accounting discretion.Finally,the information disclosure requirements of goodwill related projects should be improved to further restrict the manipulation of goodwill.