The Research On The Accounting Treatment Of Goodwill

With the gradual development of China's capital market,especially since 2014,the state has introduced new policies for the reform of M & A and restructuring models and has actively guided the M & A and restructuring of listed companies.More and more companies have expanded their scales through M & A.As a result,the total amount of goodwill in the market has continued to grow.At the same time,due to the subsequent poor management of the enterprise,a large amount of goodwill impairment has been accrued,which not only caused a huge impact on the company's operating performance,but also hidden danger to the stable development of the capital market.In this context,the accounting treatment of goodwill in mergers and acquisitions has led to extensive discussions in various circles.The article mainly studies the accounting treatment of consolidated goodwill.First,this article describes the relevant background and significance of the study,summarizes the current research results on the initial recognition,subsequent measurement and disclosure of goodwill at home and abroad,and reviews the goodwill.Relevant theories and M & A valuation methods are systematically elaborated to provide theoretical support for the subsequent case analysis.Second,the case of Shenzhen Clou Electronic Technology Co.Ltd.merges BaiNianJinHai Technology Co.Ltd.to sort out the merger and acquisition transactions,the initial recognition of goodwill,subsequent measurement,information disclosure and the completion of performance commitments.In the case,the accounting treatment of goodwill has the following problems;the initial measurement of the combined goodwill is falsely high,the subsequent failure to accrue the goodwill impairment in a timely manner,the existence of the use of goodwill impairment for earnings management,and the insufficient disclosure of goodwillrelated information.At the same time,specifically analyze the reasons for the above problems.Finally,for the problems in the case,from the following aspects suggestion;In the initial measurement of goodwill,the valuation index under the income method should be reasonably evaluated,the goodwill and intangible assets should be clearly defined,and the supervision of the evaluation agency should be strengthened;in the follow-up measurement,the goodwill should be measured in different ways.Based on the analysis of the measurement results,this article believes that in the current market background,the subsequent measurement of goodwill can organically combine amortization and impairment testing.In terms of improving the internal control system of corporate goodwill and improve.The standard for goodwill information disclosure require and strengthen the supervision of goodwill information disclosure.The research in this article is expected to play a role in standardizing the accounting treatment of goodwill in mergers and acquisitions in China,mitigating the risks caused by impairment of goodwill,and enabling the capital market to develop smoothly and orderly.