Research Of Goodwill Impairment Of Listed Company

With the case of mergers and acquisitions rising,the mergers and acquisitions had become a very important company investment activity.Because of the reform of the M&A approval process in 2014,the approval procedure related M&A has been simplified,and some approval matters have been delegated or cancelled,the M&A activities get into a new level.Since 2014 with the amount of mergers and acquisitions case growth the scale of goodwill is also growing and the proportion of goodwill in the company total assets is rising.Till 2017 and 2018 with the merger performance commitment is expires a lot of listed company has the goodwill impairment.However the defect of goodwill impairment test and the defect of goodwill and goodwill impairment information disclosure will bring the negative impact to the company.When the company prevent the risk of goodwill impairment reduce the negative impact is also important to the company.First,this article starts with the development of Chinese accounting policies description,combs the development of China's goodwill accounting standards,and analyzes the impact of current goodwill accounting standards and policies on the scale of market goodwill.Summarize the common corporate goodwill impairment problems in the market.Secondly,this article used the Changyuan Group Ltd.as the example to analysis the impact which the goodwill impairment loss effect the company,and gathering the defect of when this company running the goodwill impairment test and the information disclosure.Then this article will come up with some advises to help this company to improve the goodwill impairment test and information disclosure.According to the advice which in order to solve the problem Changyuan Group Ltd had,might help the company which has same problem and might help the supervision organization to improve the supervise the goodwill impairment test and information disclosure.According to the analysis of Changyuan Group Ltd.,the Valuation Adjustment Mechanism of M&A,the goodwill impairment test and the goodwill impairment disclosure will affect the performance of the company and the share price of the company.So in order to avoid the risk of goodwill impairment,remedy defects of Valuation Adjustment Mechanism setting,goodwill impairment test and information disclosure is necessary.The most effective way to remedy these defects is to improve company governance and internal control.