Research On Recognition Of Goodwill Impairment And Accounting Treatment

The issue of goodwill has always been the focus of attention in the theoretical and practical circles.At the beginning of 2019,many listed companies in China reported substantial losses in their disclosed annual reports.The main reason for the losses was the impairment of goodwill.However,such a large amount of goodwill impairment should not come suddenly.It is reasonable to study whether such a large amount of goodwill impairment is reasonable and whether there is a delay in recognition,and whether the recognition,measurement and disclosure of goodwill affects the situation.At present,Chinese scholars’ research on the impairment of goodwill mostly focuses on theoretical research.Conclusions are often drawn based on data analysis of large samples,and there is a lack of in-depth research on the recognition,measurement and disclosure of goodwill.Therefore,this paper focuses on studying the motivation of a company to confirm the impairment of goodwill and the impact of goodwill on business operations through the form of a case analysis,with a view to digging out valuable information from the case analysis and providing reference for Chinese accounting policy.The paper first analyzes the causes of huge amount of goodwill from three aspects,and uses listed companies to delay the recognition of goodwill impairment as an entry point,and studies the motivation for delayed recognition of goodwill impairment.Then it compares and analyzes the different subsequent measurements of goodwill,and the introduction of PAH method to optimize the existing goodwill accounting treatment.Finally,the issue of goodwill impairment information disclosure is studied.In addition,the paper puts forward corresponding suggestions on the above issues from the aspects of regulating the disclosure of goodwill confirmation and improving the disclosure of goodwill impairment.On the one hand,the research results would help investors better understand the nature of the goodwill of listed companies and the motivation for goodwill impairment to accurately understand the company’s true operating situation.On the other hand,it helps to improve the subsequent measurement mode and information disclosure system of China’s goodwill,and provides a reference for strengthening the supervision of information disclosure in the capital market.