Evaluation Of Goodwill Impairment Test

The report of the 19 th National Congress of the Communist Party of China points out that socialism with Chinese characteristics has entered a new era.With the deepening reform of the economic system,the gradual optimization of the economic structure,the vigorous development of the tertiary industry and emerging industries,the market environment for enterprises to survive is undergoing tremendous changes,which is both an opportunity and a challenge for enterprises active in the capital market.In order to consolidate its position in the industry,M & A has become a company’s business strategy of accelerating upgrading development and optimizing resource allocation.Premium M & A is the main way of M & A,and the premium formed by M & A will often form the goodwill of the consolidated statement of the enterprise.After the completion of the reorganization,due to the poor management and the outstanding performance,the pressure of all parties has increased sharply.In the subsequent development of the enterprise,the goodwill caused by M & A also lays a time bomb for the capital market.Goodwill impairment test is not only the current trend,but also the requirements of accounting standards and evaluation standards.Due to the independence of the third party and the advantages of professional technology,the assets appraisal institution can keep objective and fair by carrying out goodwill impairment test and evaluation.The emergence of goodwill impairment test evaluation business is a good connection between evaluation and accounting.Due to the late start of this business in China,there are still many problems to be solved,so it is particularly important to study it.Based on the background of the sudden increase of the impairment loss of large amount accrued goodwill,this paper comprehensively expounds the changes of the current market economy environment and the changes of national policies,and studies the impairment test and evaluation of goodwill through case analysis.First of all,under the background of large amount of impairment loss of goodwill,through detailed data collation,to provide data support and practical significance support for the study of goodwill impairment in this paper;second,through consulting relevant literature at home and abroad,it is believed that goodwill,as a special asset,will suffer from impairment;in addition,it is a discussion on the change of national policy,which changes with the change of market,Similarly,the market is changing with the change of policy,and there is a close relationship between the two.The third is the study of the theory of income method.Through the summary of the four basic models of income method,this paper analyzes the differences and proposes the research method of this paper: discounted cash flow method.The fourth is the study of goodwill and related theoretical knowledge of goodwill impairment,discusses the entry value and goodwill value theory of goodwill,expounds the formation reason and classification results of goodwill,the cause analysis of goodwill impairment,the recognition and measurement of goodwill and goodwill impairment,and the evaluation ideas and methods of goodwill impairment test.The fifth is to analyze the operation procedure of goodwill impairment test and evaluation through specific cases to verify the calculation method of this paper-discounted cash flow method.This method is based on the traditional model calculation,deducting the investment cost that the enterprise has already or will embody in the future forecast period before the benchmark date.The calculation result is compared with the book value of asset group and asset portfolio including goodwill.In terms of the calculation of the correlation coefficient of the model,the new criteria and the requirements of risk prompt are adopted for the determination of the prediction period,and the next five years and the perpetual period after the base date are adopted;the pretax discount rate is adopted for the discount rate through the rationality verification according to the requirements of the international standards.Finally,the paper summarizes the conclusions of the study,and puts forward some suggestions and prospects for the evaluation of goodwill impairment test.Due to the particularity of goodwill,different evaluation institutions have different opinions on whether it is impaired or not.Through literature review and case study,this paper hopes to provide ideas for the evaluation of goodwill impairment test practice through its own modest efforts,improve the current research and development status of goodwill impairment test in the industry,and hope that the evaluated enterprises can raise for more accurate evaluation conclusion.