Subsequent Measurement Of Goodwill And Earnings Management

The subsequent measurement method of goodwill in China is impairment test,which aims to better measure goodwill from the perspective of fair value.The operation space and earnings management of impairment test have a profound impact on the supervision and acquisition of listed companies,which makes the subsequent measurement of goodwill of listed companies become a hot topic.This paper mainly uses case analysis method to study the follow-up measurement of goodwill of listed companies.Based on the statistical data of the goodwill value of the listed companies and their changing rules,this paper takes Qtone Education Group Co.,Ltd.as the main case,examines the changes of the goodwill value and the case of merger and acquisition between 2014 and 2018,analyzes the most important and largest merger and acquisition of the company in detail,and expounds the other mergers and acquisitions that cause the changes of the goodwill value.This paper compares and analyzes the influence of goodwill impairment test and system amortization method on the profitability of the case company,and takes the impairment test methods of Jimin Health Management Co.,Ltd.and 263 Network Communication Co.,Ltd.as a reference,gives the logical correlation characteristics between the subsequent measurement methods of goodwill and earnings management of the company.The research shows that the follow-up measurement of goodwill impairment test is characterized by large discretion of major shareholders and management,difficult market supervision,obvious selective information disclosure,large space for earnings management and large volatility of financial indicators.It is suggested that the following aspects should be improved: the implementation rules of the accounting standards for the subsequent measurement of goodwill should be optimized,the goodwill impairment test should be refined,the operability of the standards should be improved,the information disclosure of goodwill impairment should be strengthened,and the amortization method should be included in the subsequent measurement of goodwill.